Significant increase in market activity in all subsea business sectors sees the Aberdeen-headquartered company report a 136% increase in operating profit.
Hydro Group Plc, a global design and manufacturer of underwater cables and connectors for subsea, underwater, topside and onshore applications, has posted its 2012-13 (to year end March 31) results with more than a 12% rise in comparable turnover from £6.3million to £7.1million and a 136% increase in operating profit from £546,088 to £1.3million
Doug Whyte (photo), Hydro Group managing director, said: "2012-13 has been our most successful financial year to date. Investment in previous years in new facilities, R&D, new equipment, processes and staff has all played a part in a strategic vision for long-term growth.
"Additional capacity and manufacturing flexibility has enabled Hydro Group to fully support increasing demands from customers in energy, defence and offshore renewables markets.
There has been a significant increase in market activity in all of the subsea business sectors addressed by the company in the last 18-24 months. There has also been an equivalent growth in export sales which represent around 30% of revenue."
In 2010 Hydro Group opened its £4.2million state-of-the-art research, design, engineering and manufacturing facility at Aberdeen Science and Energy Park, with further investment in equipment totalling close to £1million by the end of 2012, including a purpose built cable lay-up machine and additional extrusion equipment. 2013 saw electrical, mechanical and hydrostatic test facilities upgraded.
"This investment in equipment has allowed extension of our product ranges enabling the company to offer longer continuous cable lengths at larger diameters. More complex, composite cable assemblies can now be produced that are more mechanically robust and incorporate a variety of electrical, optical and mechanical strain bearing components. The enhanced product capabilities have also enabled Hydro Group to expand the engineering services for specialist product designs, installation and repair services."
A major national and international supplier of harsh environment engineered products, Hydro Group experienced growth in both domestic and global markets in 2013, realising the most significant increases in the energy and defence markets, with £600,000 and almost £2million worth of contracts secured for each respective markets in the last six months alone.
Mr Whyte continued: "The next phase of growth began this year, with the opening of our Singapore office where we have initially invested close to £300,000 in developing the South East Asia operation, recognising it as a potential high growth region for us.
"Our target turnover for the coming year is £8.5million, with future projected growth predicted to reach £10million over the next two years. This will be realised by opportunities to grow our domestic and European Energy, Defence and Renewables markets and strong International markets that will require further investment and focus to develop."
With an extensive product range, Hydro Group takes the raw materials and manufacture from start to finish in Scotland, before exporting globally. Future plans will see the SME continuing to invest in a number of areas of product development, new capital equipment and increase staff numbers from 80 to 100 in 2014.
Hydro Group Plc is an energy-service firm made up of Hydro Bond Engineering and HydroCable Systems Ltd