The Courier & Advertiser (Angus and Dundee)
Dundee’s Pacson Valves back in the black
Firm says it is yet to see the benefits of the rise in the price of crude oil
A Dundee specialist manufacturer of offshore valves for the oil industry has moved back into the black despite tough trading conditions.
Newly published accounts at Companies House show Claverhouse Industrial Park-based Pacson Valves made a slim profit of £33,502 in the year to September 29, an improvement on an £81,514 pre-tax loss declared in 2016.
Turnover in the year was £6.63 million, almost identical to that seen in the prior year.
In his strategic report to the accounts, managing director Keith Crawford said the economic environment was improving but Pacson – along with others in the energy industry supply chain – had yet to see the benefit of the recent rise in the price of crude.
“Following the oil price crash in 2014, uncertainty has remained in the market throughout 2017 and into 2018,” Mr Crawford said.
“While the world oil price has recovered during this period, rising to over $70 a barrel consistently, and the larger projects have begun to be sanctioned, this improvement in trading condition has not yet reached all levels of the supply chain, including supply of subsea and high specification valves.
“With larger projects now being sanctioned and confidence appearing to return to the market, the prospects for the group for the future years beyond 2018 are looking more favourable than in recent years.”
The accounts show the firm reduced its headcount from 90 to 75 in 2017, with the majority of the cuts coming in production roles.
“Pacson Limited continues to actively track market conditions and market press, and has continued to react accordingly, finding the right size for the current market,” Mr Crawford added.
“Despite the continued, adverse market conditions, Pacson Limited has continued to make significant improvements in the business. We have