NEWBRIDGE-based Edgen Murray has seen profits drop by more than 50 per cent as it ran into costs relating to acquisitions and moving into new markets.

The company, which supplies steel for offshore energy infrastructure around the world, has reported pre-tax profits of £8.8 million in the 15 months to March 31. This compares with profits of £20.7 million in 2012, new accounts at Companies House show.

Edgen Murray, which changed its financial year end after its New York-listed parent Edgen Group merged with the Sumitomo Corporation of America, said its operating profit and profit after tax had both fallen in 2014 compared with 2012 because of a "large rise in operating expenses."

The directors said: "All these are directly attributable to acquisitions and developments in new markets, including entry into new countries and new subsidiaries at the end of 2012 and in the current period."

Turnover rose by 14 per cent to £294 million, chiefly down to extending the accounting period. But it fell by 8.2 per cent to £235m on a pro-rata basis for 12 months, amid tough conditions.

The firm acquired HSP Group for £16.6 million over the period, which along with other expansion activity led its headcount to rise by 39.1 per cent to 324.