Offshore group’s ‘strong pipeline’ revealed in report
MARINE engineering and property owner Shepherd Offshore Group has welcomed its latest set of results as it pointed to a healthy pipeline of developments.
The Walker-based business saw a fall in revenue from £38.2m to £32.7m in the year to the end of April 2023, as operating profits fell from £15.9m to £10.3m.
Shepherd, which employs about 120 people, owns a number of sites including the Offshore Technology Park and Neptune Energy Park in Walker, the Mitford estate in Northumberland and Halbeath Interchange in Scotland.
In 2021 the group acquired the landmark 12.94-hectare Swan Hunter shipyard site on the Tyne, revealing plans to turn it into a business park for offshore and advanced manufacturing firms. In late 2023 the firm hailed a milestone for Swans Energy Park as it secured a decommissioning permit for the site from the Environment Agency, meaning it can accommodate disassembly of oil and gas platforms and a variety of vessels.
In accounts published at Companies House, Shepherd described a strong pipeline of property developments and contracts in place for quay management services. There was a small fall in the group’s net rental income which reduced by 5.3% to £5m.
Shepherd counts some of the UK’s most prominent offshore names among tenants of its sites, including JDR Cables and Baker Hughes.
Documents detailed a gross profit margin of 59.3%, down only slightly from 60.6%, with bosses saying the healthy performance had helped to fund further property acquisitions and boosted cash coffers to £46.7m, up from £41.6m the year before. Directors hailed a strong balance sheet with increased net assets of £119.6m.
Shepherd also also majority owns sports agency business Triple S Sports Management Ltd, which represents high-profile football players and managers, such as Wayne Rooney and Harry Maguire. In 2022, it sold its stake in Cheshire-based March Sports Limited for a profit of £2.5m.
A review accompanying the accounts, signed by director Bruce Shepherd, said: “In the opinion of the directors, the results of the group for the year were satisfactory; with the income from property development, warehousing and distribution, quay management services and sports management generating a healthy profit margin.
“The group’s turnover has reduced by 14.6% to £32.7m (2022: £38.2m) as there was no income from property development during the year (2022: £1.4m).
“Rental income has reduced by 5.3% to £5m (2022: £5.3m) while rendering of services has reduced by 12.3% to £27.7m (2022: £31.5m). The directors are satisfied with the overall turnover generated by the group.”
It went on to say: “Due to the strong pipeline of property developments, the contracts in place for the quay management services and the terms and duration of the lease agreements, the directors are confident that the results of the group and company will continue to be satisfactory.”