The Courier & Advertiser (Angus and Dundee)
Acquisitions bolster Fife firm’s growth journey
Parsons Peebles consolidates its position in electromechanicals market
An electric motors, generators and copper wound coils manufacturer has hailed the impact of a bolt-on acquisition in its journey to becoming a full scope provider of electromechanical services.
Parsons Peebles Group (PPG), the parent of Rosyth-based Parsons Peebles Generation Limited, said the takeover of Taylor & Goodman in 2016 was key to the group’s long-term plans.
“The acquisition of further UK workshop and site service capability is central to the growth strategy of the group,” chief financial officer Nairn Black said in his strategic report to PPG’S newly published accounts.
“It deepens the group’s market presence in the water sector and opens up opportunities to serve the UK industrial and facility management sectors.”
The group is ultimately controlled by Clyde Blowers Capital Fund III, an investment vehicle headed up by Scottish industrialist Jim Mccoll.
The billionaire businessman personally led the acquisition of 120-year-old Parsons Peebles in 2013.
Since then, Sheffield-based Preformed Windings, Anstee & Ware and Taylor Goodman have been added to the PPG portfolio.
The accounts for the year to December 31 2016 show PPG revenues more than doubled in the year, increasing from £15.6 million to £36.79m.
Pre-tax losses in the period increased from £2.67m in 2015 to £3.71m.
However, PPG said significant progress had been made since the takeover by Clyde Blowers five years ago, with underlying earnings before interest, taxation, depreciation and amortisation (EBITDA) improving year-on-year.
Underlying EBITDA came in at £1m in 2013 and topped £3.8m in 2016.
“The group is well placed for growth going forward through continued execution of the strategy,” Mr Black said.
“The group will continue to leverage its strengths of a responsive and comprehensive service offering backed by original equipment and engineering credentials.
“The outlook for 2017 projects strong growth in both revenues and profitability.
“This will be driven by further diversification as non-uk sales will account for more than a quarter of total revenues.
“This will be achieved under the Parsons Peebles brand which will be rolled out to the service revenue stream.
“Further complementary acquisitions are on the horizon, increasing geographic and market presence.”
Sectorally, PPG’S Rosyth-based Original Equipment unit moved into new business areas during 2016 and increased international sales by 15%.
The coils business saw improved turnover and profitability, while the service unit, which operates from 11 locations nationwide, was bolstered by the Taylor & Goodman acquisition.