STATS eyes Australia after sale to Aussie group fails
Pipeline technology specialist STATS (UK) aims to follow up the collapse of its sale to Australia-based SRJ Technologies by expanding on its own in the country.
The deal with SRJ – listed on the Australian Securities Exchange – had been agreed in December but was called off earlier this month as a result of “market volatility”.
The Aberdeen company is now revving up its growth plans by targeting Australia and Saudi Arabia as part of an international strategy. The plan follows a surge in profits and revenue for the year to the end of December.
Chief executive Leigh Howarth, said the company had delivered “an excellent trading result for the year” despite the ongoing impact of the Coronavirus pandemic.
He said: “Internationalisation remains a key strategic objective for the group with 87% of revenue in the year derived from contracts executed outside of the United Kingdom.
“Notwithstanding the continuing impacts of Covid-19, we’re expecting to see a further rise in revenue over the coming year and in support of our strategy to further internationalise, we’ll be considering plans to increase our local presence in both Saudi Arabia and Australia.”
He believes it will see revenue grow this year, following a 17% increase in turnover to £49.7 million.
EBITDA earnings rose to £7.8m from £6.5m and pre-tax profits rose to £1.5m from £1m, its latest annual accounts show.
STATS principal activity is the provision of pressurised pipeline isolation, hot tapping and plugging services to the energy industry.