CEO of Engie Fabricom departs as firm faces up to another loss-making year
GROUP’S £25M BAILOUT COMES AS IT WINS NEW WORK IN OFFSHORE WIND
SOUTH Bank engineering giant Engie Fabricom has parted company with its chief executive as it prepares to report another lossmaking year. Long-serving Richard Webster has left the multi-disciplined operator as it was revealed the past 12 months had exacerbated the company’s position, with a £25 million investment by the French parent group now supporting its trading position. Accounts for 2019 - due at the end of December - remain outstanding at Companies House for the Grimsby-headquartered giant, having started 2020 with a reported £7 million loss.
That was attributed to a “longrunning challenging project” that was £6 million in the red. Downturns in the oil and gas market prior to the pandemic had also hit the Europarc business - with last reported revenues of £67 million and almost 300 staff - hard. Mr Webster, who had been with the business for 25 years, serving as chief financial officer and chief operations officer prior to taking the top role in early 2018, has not responded to an approach, with the business not addressing his termination as a director when contacted. A statement from Engie Fabricom said: “During 2020, we continued to
operate as a multi-disciplined engineering, project management and construction company, however we have experienced challenging market conditions.
“The impact of Covid-19, and a number of other challenges, some beyond our control, have meant that we suffered a financial loss. “Our parent company continue to support us, recently investing £25 million in share capital into Engie Fabricom UK Ltd, demonstrating the confidence of our shareholders in the UK team, and in the company’s future.
“We have recently secured a series of projects in the growing offshore wind sector and are currently delivering our specialist services on many of the UK’s leading offshore wind farms.
“Engie Fabricom UK Ltd will continue to focus on being the partner of choice for our clients both new and old in 2021 and beyond.” The company is closely aligned to the South Humber Bank, with a huge project yard beside its former headquarters in Immingham. That is now home to Modal and Orsted’s Thrive training facility.
Mr Webster took the CEO role
after Dutch national Wichard Huigen’s 18 month interim stint, following the departure of long-serving Nigel Carlton.
A “healthy return to profitability” had been flagged then, with a tripling of turnover.
In early 2019 he spoke of tripling again by 2022 - with revenues of £150 million targeted.
GDF Suez, renamed Engie in 2015, bought a stake in what was South Humberside Engineering and Fabrication Services in 1995 when founder Bill Duffield, a director at Grimsby Town FC, passed away, absorbing Barton’s Techmac and Brigg’s GSA on the way.
THE UK has left the EU and the Brexit transition period is over, with new rules in place for doing business with Europe.
From using the Brexit Checker tool to working closely with trade bodies, there are lots of steps businesses can take to keep things moving.
“The best piece of advice I can give to organisations of any size is to take all the help and expertise on offer,” says
Anthony Pickering, president at electronics manufacturer Control Techniques. “We’ve been working on this ourselves, using Government tools for everything from getting our EORI number to establishing what impact the changes could have on our business.”
HELPFUL
Anthony says the trade association GAMBICA has also been a big help: “Webinars and training materials from both them – our particular trade body – and the Government have been incredibly useful, especially during emerging situations.” And keeping a close eye on the new arrangements, explains Anthony, is an inhouse working group at Control Techniques focused on procurement, operations and finance.
“Its main objective is keeping our supply chain robust as the new rules settle in,” he says. “We supply products to 77 countries from here in the UK, and also procure more than £72million worth of components from around the world each year. A smooth flow at every stage of the supply chain is essential.” And while things have run relatively well so far, the company has, Anthony says, experienced some “teething problems”. This includes the delay of three pallets as paperwork related to another pallet on the same lorry didn’t match. But Anthony is hopeful that examples like this are temporary.
“The backdrop is tricky due to Covid,” he adds, “but in terms of the paperwork, and offsetting some of the additional logistical costs with investment and extra efficiency elsewhere in the business, the process so far has been fairly stra i g h tf o r ward. Getting up to speed with the new rules has also been key for Barry Leahey, managing director at Playdale Playgrounds – a family-owned business that exports children’s playground equipment around the world.
“We put in place a risk register of actions for us to perform, cascading down through the business. “Each section, covering everything from the movement of people to logistics, contracts, intellectual property and supply chain, was taken on by a board member, so we’ve been able to keep a close eye on all the changes as they emerged.”
Attending numerous Government webinars, Playdale’s staff have gradually upskilled. “We’re not a huge organisation, and we’ve built that preparation up over time,” says Barry.
“We used all the tools available to us, like the Government’s website and Checker tool and the CBI’s transition hub, and we’ve chosen to work with other savvy businesses for things like logistics.
DOCUMENTATION
“We’ve also gained Authorised Economic Operator status from the EU, which should help documentation and products through the EU and mean there’s less
chance of being held up.” And with key steps in place in time for the end of the transition period, including securing an EORI number and stockpiling materials, Barry says every delivery was on time for the company in January.
“So far we’re relieved at how it’s gone,” he says. “We’re not some big public limited company with staff to burn; we’re an SME and work within tight margins.
“It’s proved to us that by getting the details right, taking the help available and doing the paperwork, none of this is beyond our capacity. And if a company like Playdale can do it, then any company can.”
It shows by getting the details right, none of this is beyond our capacity Barry leahey MD, playdale playgrounds