Shipbuilder refocuses on renewables

Group Business Correspondent

Friday 5 October 2012

THE chairman of Lithgows has said the former stalwart of the Scottish shipbuilding industry is geared up for a prosperous future in its new guise as a renewable energy specialist.

Custom byline text:

MARK WILLIAMSON

In the latest accounts for the eponymous firm, James Lithgow underlines the group's appetite to invest in renewable energy schemes which its experience suggests will deliver good returns well into the future.

Mr Lithgow's confidence reflects the progress with two pioneering schemes that will allow farmers in remote areas of western Scotland to generate hydroelectric and wind power.

The company is in a 50-50 partnership with Inver Farmers, which developed a hydroelectric scheme that started generating power on the Isle of Jura in June. This is expected to provide enough electricity to power more than 1000 households."This effectively makes the Isle of Jura fully self-sufficient in renewable energy," writes Mr Lithgow in his chairman's statement, dated September 14.He adds the power generated by the scheme will have an annual revenue value "in excess of £1 million".The scheme will last indefinitely if continuously maintained and refurbished, predicts Mr Lithgow. Based at Langbank in Renfrewshire, Lithgows has a stake in a venture developing the Allt Dearg Community Wind Farm at Ardrishaig, Argyll."I am pleased to advise that 12 V52 turbines have been successfully erected on site, and initial generation is projected to begin within the next few months," writes Mr Lithgow.The 10 Megawatt wind farm is expected to generate enough power for 6500 homes, from which annual revenues of around £4m will be obtained."I am delighted that I can report on the successful implementation of the initial projects at Inver and Allt Dearg, and look forward to further progress in the development of more renewable energy schemes which will generate strong and consistent cash flows for the group for many years ahead," says Mr Lithgow.The progress achieved seems to vindicate Lithgows' decision to exit the salmon breeding business in which it was active for years through the sale of the Landcatch business to Dutch conglomerate Hendrix Genetix last year. The sale allowed the company to significantly reduce its debts. The company had positive net funds at the year end.Lithgows made a £295,000 pre-tax profit in the year to December. It lost £3.5m in the preceding year, after providing £3.3m net against the value of Landcatch in advance of the sale.Turnover fell to £5.7m, from £9.3m, reflecting the disposal.Owned by descendants of the founder of the former Port Glasgow shipbuilder Scott Lithgow, the company still operates the Buckie Shipyard.This recently won two deals to design and build aluminium catamarans for firms that service offshore wind farms. It worked on eight similar boats as a subcontractor previously.However, Mr Lithgow said he was disappointed that after servicing lifeboats for 70 years the yard was no longer contracted to undertake regular refits by the Royal National Lifeboat Institution.Mr Lithgow said the RNLI decided to consolidate work in three locations in the belief this would achieve cost savings. Lithgows still provides services for aquaculture companies and leisure users at the Marine Resource Centre north of Oban. It also has property interests.

Contextual targeting label:

Finance

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis. If you're a relatively new user then your comments will be reviewed before publication and if we know you well then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules, which are available here.

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

Shipbuilder refocuses on renewables

Commenting & Moderation

MOST READ

SPONSORED LINKS

MOST COMMENTED