Former rag-and-bone company John Lawrie Group last year turned over £81m and saw operating profits surge 10% to £4.5m as it capitalised on North Sea oil rig decommissioning and expansion overseas.

Former rag-and-bone company John Lawrie Group last year turned over £81m and saw operating profits surge 10% to £4.5m as it capitalised on North Sea oil rig decommissioning and expansion overseas, according to accounts it filed with Companies House.

The Aberdeen-based scrap metal processor and steel trading company expanded its trading activities with alliances in Canada and New Zealand.

However, the company, which employs 100 people, also targeted the North Sea oil rig decommissioning sector, investing £3.4m in equipment over the year, including the installation of what the company says is the UK's largest shear for cutting scrap metal, which was installed at the company's Aberdeen facility.

John Lawrie Group has committed £5m for capital expenditure in 2008.

This sum includes the initial development of a new environmental services division, which will tackle the decontamination of naturally occurring radioactive materials for companies in the north-east oil and gas industry.

Finance director Charlie Parker was bullish about the company's work in the steel tubulars market, which supplies pipes for the oil industry and other sectors.

He said: "The presence of John Lawrie Group within the international steel tubulars arena has also continued to flourish.

"Over the last four years we have seen significant growth in activity in our oilfield tubulars division in the United States."