Focus shift hits Turner Group profit and sales
Services company moves out of oil recycling sector
MULTI-sector services group Turner & Co (Glasgow) has seen revenue drop 35 per cent to £190 million following a move away from the low-margin facilities management sector, and the continuing oil and gas downturn.
The family-owned business, led by chairman Alan Turner, made a pre-tax profit of £5.8 million for the year ending March 25, down 58 per cent on the previous year.
The company said it made the “difficult decision” to completely exit the oil recycling market, switching focus to renewable energy and other emerging markets.
This resulted in the company employing 535 fewer staff in an average month, with staff numbers in the year averaging 1,429.
The company said that the low oil price continues to have a detrimental effect in a number of its key markets and has affected trading activities across a number of its 23 subsidiaries, which has led to “significant” cost cutting.
This included, in February, Northburn Industrial Services being placed in administration. At the time, the oil price had led the company to a £1.5m operating loss on turnover of £7.5m.
Turner made a £950,000 loss on the disposal.
The company has remained acquisitive, picking up Varhaugs Maritime Diesel, a diesel engineering subsidiary based in Norway and this month adding Ecoliving, a Glasgow-based renewable energy specialist.
Elsewhere, Turner said as a result of high customer demand and continuing opportunity in its asset rental activities, the group capital investment programme remained “on track and very strong”.
Turner’s engineering and support services division saw revenues drop 41 per cent to £155m as two major long-term facilities management contracts ended.
Its aviation division reported a 30 per cent increase to £11.7m with pre-tax profits up 53 per cent to £2.5m. Its construction access business saw seven per cent growth to £7m, with losses narrowed to £560,000. And its van hire division saw a drop of 12 per cent to £16.7m, with profits down to £220,000 as a result of a squeeze on margins.
The group said it also continues to invest in a range of longer term opportunities which “offer exciting prospects for the future”.
Over the course of the reporting period, its Iceni Marine Services subsidiary launched a number of new crew transfer vessels, keeping the fleet up to date and incorporating innovative features derived from that business’ specialist knowledge of offshore wind farm operations.
Elsewhere, Southampton-based Exsel Pumps extended its depot network into Kent and Yorkshire while Turner Hire Drive enhanced its southern network with a new facility in Altringham and a new operational base in the East Midlands.
Turner Access, the group’s scaffolding systems manufacturer, continues to develop its range of market leading products selling and distributing its range of equipment throughout the UK, Scandinavia, North America and establishing a distribution agreement for Australia.
‘‘ The company has remained acquisitive, picking up Varhaugs Maritime Diesel and Ecoliving