A £12.2 million gain on the sale of its engineering and construction business has come at a "pivotal time" for Global Energy, the Scottish services group owned by Ross County Football Club chairman Roy MacGregor.
Inverness-based Global announced in February that it had sold one of its biggest businesses, Global E&C, to Houston-based private equity firm SCF Partners for an undisclosed sum. Releasing results yesterday which showed a surge in revenues in profits in the group's latest financial year, Global chief financial officer Gordon Farmer said the group's remaining businesses have benefitted from the gain on the sale as Global increases its presence in the low-carbon sector.
READ MORE: Ross County chairman sells energy firm to US private equity player
“The divestment of Global E&C has significantly strengthened the group’s balance sheet and reduced working capital demands simultaneously," Mr Farmer explained. "The injection of additional capital is at a pivotal time for the group as we look to develop our business to support future market demands in energy sector.”
Group revenues were split evenly between low carbon hydrocarbon activities for the first time since Mr MacGregor set up Global Energy in 2005. The conglomerate is comprised of a host of companies providing specialist services and facilities to the energy sector, and its facilities an extensive presence at the Port of Nigg in the Moray Firth.
Turnover in the latest financial year rose by 21% to £273m, driven largely by project growth in the wind and nuclear sectors. Pre-tax profits surged to £17.7m, up from £400,000 previously.
During the year Global secured additional scopes of work at Hinkley Point C while the SeaGreen marshalling offshore wind project, for which work commenced at the Port of Nigg in August 2021, was active throughout due to project delays and variations. A first full year of trading by the new global wind projects business further boosted 2023's results, while crane services supported numerous onshore wind projects in both Scotland and Ireland.
READ MORE: Green Freeports are one of biggest industrial opportunities Scotland has ever had
Mr MacGregor said the recent Green Freeport award for the Port of Nigg was a further "significant landmark" for the group.
"I think it’s safe to say that the facility is firmly established as Scotland’s premier offshore renewables hub and multi energy source user site, with five key marshalling projects - including for the Beatrice, Moray East and SeaGreen wind farms - delivered there already," he added.
“Looking forward we believe that Global Energy Group are ideally positioned to maximise on the considerable opportunities presented throughout the tax relief period that Freeport status brings. Continued investment in facilities, capabilities and our people will see us realise the full potential of the facility and associated GEG businesses to build a sustainable group to support a diversified market and customer base for years to come.”
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