Engineering firm buoyant after £600,000 of new contract wins
A leading engineering services firm, SengS, has announced significant new deals which will take its turnover for this financial year past the £2million mark for the first time.
The Ellon-based business has also strengthened its senior team with the appointment of a new managing director. Formerly the company’s operations manager, Peter Thomson has taken on the key strategic role to drive continued growth both in the north-east and further afield.
With more than 15 years’ experience in the oil and gas industry, Peter initially joined SengS in 2014 as workshop manager before being promoted to operations manager last year.
Since assuming the role of managing director in March, SengS has already secured new contracts worth more than £600,000 with oil and gas operators and tier-one service companies for the repair and maintenance of several North Sea offshore installations.
Peter said: “I’m extremely pleased to have been appointed to this new position at such an exciting time for SengS and look forward to building upon the ambitious growth strategy we have in place here.”
“The investment made in the business over the past few years gives SengS a strong platform to support our broadening customer base with our cost-competitive solutions in ‘the new normal’ environment for the oil and gas industry, as demonstrated by these latest contract wins.”
Murray Kerr, who founded SengS in 2012, has taken on the newly-created role of group strategic commercial director at Pryme Group, following the Dundee-based organisation’s acquisition of SengS in November 2016. Murray retains an active interest in SengS.
Peter’s appointment as managing director will allow Mr Kerr to concentrate on business development across the broader Pryme Group and improving group operational efficiencies using working practices successfully implemented at SengS.
Murray said: “Peter’s appointment is well deserved and is testament to the hard work and dedication he has brought to the fold since first joining the company. He will continue to play a vital role in driving SengS forward as we look to identify new growth opportunities that will give the business a real competitive edge.”
SengS expects to achieve turnover of over £2million for its June 2017 year-end – a projected increase of 30% on the prior year.
The company, which currently employs 19 people, is targeting additional growth of 20% by 2018 and expects to recruit further personnel, having already added two new employees since the beginning of the year.
Murray added: “Despite the uncertainty still facing much of the industry, SengS has continued to outperform expectations and grown significantly over the past year. We have experienced a 36% increase in the service side of our business in the past year alone, while the engineering side of the business is coming back strongly.
“Overall, we are beginning to see increased positivity in the North Sea market and momentum is definitely picking up. With Peter at the helm of SengS, I have complete confidence that we will achieve our goals for the business.”
SengS provides engineering, testing, control and hydraulic systems and tooling to the energy industry. Since 2012 the company has successfully delivered more than 450 projects across multiple disciplines for clients in the North Sea, Scandinavia, the Middle East and North Africa.
The business has invested £4.2million over the past two-and-a-half years in developing its 9,817 sq ft test facility. This included a £250,000 investment last year to enhance its existing pressure testing capability with the addition of a custom-built 60ft test rig and a 7.8m diameter by 5.8m high external water test tank.