Investing locally pays off for pipeline firm STATS
Leigh Howarth: Scalable future
Investment in local management teams has paid off for pipeline technology specialist STATS (UK) which has seen a rise in profits and revenue.
The strategy enabled the company to withstand the economic and social challenges of closed national borders during the worldwide pandemic.
The company, based in Kintore near Aberdeen, saw pre-tax profits for the year to the end of December 2020 rise to £1 million from £200,000 in the previous 12 months on income of £42.5 million (2020: £39.1m). EBITDA came in at £6.5 million compared to £900,000 previously.
The annual accounts noted that 88% of revenues were generated overseas, with significant breakthrough in the North American pipeline sector, reflected in revenue in the US up 51% to £12m from £8m.
To support this growth, STATS moved its US operations to larger premises in Houston, while increased product sales and localised fabrication capabilities in Edmonton delivered record trading revenues in Canada of £6.7m.
Group chief executive Leigh Howarth, said: “Our long-term investment in regional teams and infrastructure allowed us to be much more resilient to the economic and social challenges posed during the peak of the Covid-19 pandemic when many national borders were closed and movement was restricted.
“Not only has the strategy to localise been vital in building resilience during this most challenging period, but it gives us the platform for a bright, scalable future and is testament to the sustainability of our business.”