Chieftain turnover surge
Mar 19 2008 by Andrew Mernin, The Journal
ENGINEERING firm Chieftain Group reaped the rewards of a buoyant energy sector last year as it saw turnover surge 39% to £46m.
The Newcastle-based plc yesterday said 2007 was an outstanding year in which the firm’s pre-tax profits climbed 40% to £2.1m.
In its report for the year to December 31, 2007, the company revealed its biggest ever order book of £69m and announced a 50% increase on the previous year’s share payout to 4.5p.
Chieftain, which provides services such as joinery and welding to the oil and gas sector, said its maintenance division had been a major contributor to group profits.
However, it revealed that a deal last year to acquire Kevin Lloyd on Teesside had not delivered the business it had hoped with local steelworks.
And the firm’s fabrication arm had seen mixed fortunes with pipework fabrication failing to secure enough work to fill its facilities to full capacity.
Chairman Peter Wardle said the firm was currently involved in a series of major projects which, if successful, would boost forward order value.
Chief executive Bill Taylor said: “This has been an outstanding year for Chieftain with the group achieving record results. The board’s strategy to develop the business through its core skills is proving very successful and we are continuing to win high-quality long-term contracts.
“Having already secured clear visibility of the order book, I believe that the group is in great shape to capitalise further on the excellent opportunities which are presenting themselves.”
Fergus Westwood, an assistant director at the Newcastle office of brokers Brewin Dolphin, said: “The oil services sector has been extremely strong and, with oil prices spiking, companies have been more and more inclined to drill and explore so it has driven up demand for Chieftain’s products.”
Chieftain shares climbed one point to 189p yesterday.
2007 IN FIGURES
Turnover – up 39% to £46m
Pre-tax profit – up 40% to £2.1m
Basic earnings per share – 17.16p
Order book – £69m
