The Press and Journal (Inverness, Highlands, and Islands)
Balmoral turnover another reason for Milne to celebrate
North-east entrepreneur Sir Jim Milne is celebrating his 81st year by announcing a 37% year-on-year jump in turnover at his Balmoral Group.
Boxing Day is always an extra special occasion in the Milne household as it’s also Sir Jim’s birthday.
And this time he has even more cause for celebration after sales from continuing operations at Balmoral surged to £136 million during the 12 months to March 2023, from £99m a year earlier.
The increase is attributed to sustained momentum in renewable energy markets.
All divisions of the Aberdeen-headquartered engineering group are said to have played their part.
Balmoral – founded by Sir Jim in 1980 – operates globally and employs more than 60 people across bases in Scotland, England and Wales.
Pre-tax profits in 2022-23 were “virtually breakeven” at more than £9m. Operating profits increased to £8.3m, from £500,000 in the previous year.
Owner, chairman and managing director Sir Jim said: “A conscious move into the renewable energy space has made good progress. The order books in the main trading businesses are very strong, demonstrating that the sustained investment in our products and people is delivering significant returns.”
The group’s Balmoral Comtec subsidiary has “continued to build momentum in securing renewable energy projects”, Sir Jim said.
He added: “We are pleased in our role in advancing the offshore wind sector towards maturity and remain dedicated to driving positive change in the renewable energy landscape.”
Balmoral Tanks, meanwhile, has “continued to grow its reputation as a quality manufacturer”.
This and investment in the business resulted in the subsidiary returning to strong profitability as it continued to expand in overseas markets and new sectors, Sir Jim said.
Balmoral-owned Blaze Manufacturing continued a turnaround, with an “impressive order book across diverse sectors” and profitability continuing to improve, he added.
Summing up trading in 2022-23, Sir Jim said: “Balmoral Group has emerged from a turbulent few years in good shape from an operational and financial perspective.
“This success is testament to our workforce, whose dedication and hard work ensured we continued the momentum of the previous year. We have a strong balance sheet, with significant cash resources, and the outlook is very positive, with growing order books and improving profitability.”
Group deputy managing director Bill Main said the race towards net zero was driving greater investment in new energy markets.
This is happening as Balmoral Group itself transitions from a company focused on oil and gas to one “supporting all aspects of the energy supply chain”, said Mr Main, who is also managing director at Balmoral Comtec.
He added: “A great example of this transformation is evident through Balmoral Comtec, where more than 60% of current inquiries are tied to renewable projects.
“Over the past year approximately 40% of our order intake has originated directly from the offshore wind sector.
“We are particularly proud of the development of patented technology, Balmoral HexDefence, the innovative scour protection system for fixed offshore wind, and the development of industry-leading manufacturing techniques for anaerobic digestion tanks.
“These solutions underpin the evolution of the group away from being primarily an oil and gas solutions provider.”
Alongside the results, Balmoral highlighted its ongoing commitment to community support through its involvement with events, schools and charities including Friends of Anchor.
Last week Global Energy Group, of Inverness, said renewables projects now account for half of its business.