FAMILY-OWNED shipping and energy services firm Craig Group has announced strong growth on the back of the buoyant oil and gas market.

The Aberdeen business reported a 21% rise in turnover from £92 million to £111.9m in the year to the end of April 2011, with pre-tax profits growing by 42% from £10.74m to £15.25m.

The North Star shipping arm saw a 17% increase in turnover to £73.2m with oilfield procurement division Craig Inter-national Services up 12% to £34.2m.

Chairman and managing director Douglas Craig believes investment in fleet and people has given the company a "competitive edge".

He said: "We are very pleased as we have seen steady growth across all our divisions.

"The high oil price has helped push up demand, we have managed to keep winning business and we are very lowly geared."

Emoluments for the highest- paid director dropped from £706,000 to £374,000 and no dividend was paid.

Capital expenditure was £16.4m with £15.4m of that on modernising the fleet of emergency response and rescue vessels. A further four ships, worth more than £30m, are due to be delivered in the current financial year.

Craig Group has spent £170m since 2003 on commissioning 20 new vessels, giving it the largest and most modern wholly owned fleet in the UK offshore industry.

Mr Craig, the third generation of the family to run the business, said: "This has enabled us to win new contracts and retain existing ones as oil and gas operators are demanding the best vessels and crews to support operations in the hostile North Sea."

West Africa, Brazil, Australia and Poland were all highlighted as having strong growth potential for the business.

Charities and local causes, including the new Aberdeen University library, received donations worth £397,000 in 2011.

North Star's vessels and crew have saved more than 70 people in the North Sea and provide support to dozens of oil platforms.

Craig Group employs around 1000 people and has offices in Houston, USA, and Cape Town, South Africa. It also owns the Kings Links Golf Centre shop and driving range in Aberdeen.

The company was founded as a fishing venture in 1933 by George Craig Sr and reached a peak of 23 vessels in 1975 before changing direction to focus on the energy market.

Corporate communications manager Samantha Craig is the fourth generation of the family involved in the business.