Directors at Shepherd Offshore say the firm is on the acquisition trail as it seeks to ramp up its position in the region’s growing energy and offshore markets.
The Walker marine engineering and warehousing business owns a number of sites including Swans Energy Park – the former Swan Hunter shipyard in Wallsend – the Offshore Technology Park and Neptune Energy Park in Walker, the Mitford estate in Northumberland and Halbeath Interchange in Scotland. The group counts companies including JDR Cables, Royal IHC Ltd, Bridon-Bekaert, IHC and Baker Hughes among its tenants.
Shepherd Offshore has now published accounts for the year ended April 2022 in which turnover rose 21.5% from £31.5m to £38.2m, although operating profit dipped from £17.16m to £15.96m, and pre-tax profit dropped from £17.05m to £15.8m. Total comprehensive income was £12.3m, down from £13.8m, but total equity at the group was recorded at £108.8m, up from £96.86m.
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It said the profit attributable to the parent company Shepherd Offshore group limited, was £18.9m, up from £6.76m. Rental income grew by 9.7% to £5.3m, and income from property development remained constant at £1.4m. The accounts cover the financial year after the company acquired the historic former Swan Hunter shipyard in January 2021, unveiling plans to convert the 12.9 hectare site into Swans Energy Park, with a deep-water quay with heavy load out facilities and support areas.
In the 2021/2022 accounts, director Bruce Shepherd said the results were satisfactory, and highlighted the potential for further acquisitions, fuelled by strong income from property disposals.
In the accounts report, he said: “Key decisions made by the board during 2021/22 were related to the improvement of development sites, customer service, and the investment into the business. The decisions taken will result in sustained growth and security in the market. This will facilitate revenue growth and allow us to enable expansion and development at the required sites.
“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.
“During the year the group has continued its property development activity and will fund further acquisitions using the income from development disposals and the principal activities.
“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.”
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