Swepco hopes to see turnover hit £25m

Oct 23 2007 by Chris Knox, The Journal

ARENEWABLE energy firm says it is set to see its turnover shoot from £1.6m to £25m in four years following a £1m investment and a merger with its sister company.

Stockton-based AAG Swepco has merged with AAG Electrical in a move which it says will help cause its turnover to double year-on-year following the deal.

AAG Electrical, also based in Stockton, has added 30 staff to Swepco’s 10-strong workforce, with the new business retaining the Swepco brand. The business is also heading a recruitment drive and hopes to double its number of employees within a year.

The business will also benefit from a £1m cash injection from a group of private investors, which will be used to modernise its equipment and grow its range of renewable energy products.

It also plans to invest much of its future profits into doubling its number of offices from three to six, including a second site in the North-East. The company currently has offices in Glasgow and Bidford-upon-Avon in addition to its head-office in Stockton.

Mohammed Akhmed, managing director at AAG Swepco, said: “The investment provides a platform for our company to develop and grow, including employing more local people.

“We are all extremely excited about our plans, and it can only show our commitment to our clients, staff and the area.”

AAG Swepco specialises in the design, supply and installation of renewable energy systems such as solar-panels and wind turbines and has worked with a host of businesses in the sector.

The employees brought over from AAG Electrical will continue to focus on the provision of electrical equipment to companies in the water industry, including Scottish Water and Morgan Est.

Dr Michael Jeffries, one of the company’s private investors and founder of Middlesbrough-based internet firm ISP Onyx, has also been brought in as its chairman as part of the deal.

AAG Electrical, which had a turnover of £1.4m before the merger, was launched in 2002 by Mr Akhmed and director Steve Gilpin, before AAP Swepco was created by the pair as a separate entity a year later to capitalise on the growing popularity of renewable energy sources.

The merger was aided by the advice of Nigel Williams at Newcastle law-firm Dickinson Dees. He said: “Clearly both these businesses are thriving.

“The increasing popularity of solar power means that AAG Swepco is perfectly positioned to meet demand, while AAG Electrical has deservedly built up an excellent reputation in the North-East and further afield.

“There is an obvious synergy between the two companies and I believe the future of AAG Swepco is exceptionally bright.”