Altrad warns of market fragility

Altrad’s £332m acquisition of Cape in 2017 was the main driver of record financial results at the industrial services giant.

But Altrad warned that North Sea activity levels would remain subdued in the near term.

The company said the drop in crude prices in the fourth quarter of 2018 had hit spending plans and showed market “fragility”.

But Altrad’s focus on maintenance is providing a degree of protection against volatility. The French group spent much of the past 18

“Projects are still at the early design and planning stage”

months bringing its UK subsidiaries under the Altrad Services brand.

Altrad said integrating Cape had expanded its service offering and given it clout in longterm growth sectors such as oil and gas.

The company posted £180 million net profit in the 12 months to August 31 2018, up from £124m a year earlier, with revenue of £3 billion, from £1.9bn.

Altrad Services has 600-700 staff members in the UK North Sea and East Irish Sea, providing maintenance services.

Altrad managing director Simon Hicks said North Sea activity levels were “low but stable”, with projects still in the “early design and planning stages”.

He does not expect a “significant movement in volumes over 2019-20”.