Record £1m profit for Dron & Dickson

Group Business Correspondent

Thursday 1 November 2012

DRON & Dickson, which designs and supplies electrical systems for use in hazardous areas on oil rigs, has more than doubled profits ahead of a push into the Middle East market.

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MARK WILLIAMSON

Stirling-based Dron & Dickson saw a record £1 million pre-tax profit in the year to May compared with £423,000 in the preceding year as it benefited from buoyant activity levels in the core oil and gas market.

Writing in the latest accounts for Dron & Dickson Group, directors said a 33% rise in turnover in the period (from £36.6m from £27.6m) reflected strong growth at home and overseas."The oil and gas market remained buoyant and all trading branches exceeded annual targets to produce a record set of results," said the directors' statement.The company maintains and supplies systems used in areas where oil and gas is being produced and for functions such as lighting helicopter landing pads.The accounts provide further evidence of how Scottish oil and gas services firms are using expertise developed in areas such as the North Sea to develop fast-growing businesses in overseas markets. The directors added: "Overseas sales increased by almost 300% [to £2m from £520,000] and this contributed to margins being maintained in a very competitive marketplace."Privately owned Dron & Dickson recently established a physical presence in Dubai to capitalise on the boom in the Middle East market.Earlier this month the company bought a local company Totus Energy for an undisclosed sum to accelerate its growth. The acquisition was sealed five months after the company opened the office in Dubai.Group managing director Colin Rowley said the company moved into the Middle East in response to demand from existing clients for it to provide services in the region. The acquisition of Totus allowed the company to acquire a base of local customers in a region where it can take years for newcomers to get onto some firms' approved supplier lists.Dron & Dickson is considering moving into other territories where clients might require its services.The company expects to benefit from continued investment by oil and gas companies who want to maximise output to meet strong demand.Mr Rowley said sales and revenues in the first five months of the current year were up on the same period last time.The company's success paved the way for a significant increase in employee numbers in the latest financial year. The average number of employees was 140 compared with 112 in the preceding year.Incorporated in 1927, Dron & Dickson began life as a supplier of explosives to the mining and quarrying industries. It moved into the oil & gas market in the 1970s.Mr Rowley led a management buy-out of the firm from his father, Arthur, in 2007, supported by two directors, Colin Maver and Gerry Lafferty.

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Record £1m profit for Dron & Dickson

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