PIPELINE technology specialist STATS has narrowed losses after cutting costs amid the downturn in the North Sea and growing sales in important overseas markets.
Aberdeenshire-based STATS made a £0.8m pre tax loss in 2017, compared with £1.4m in 2016.
The company, which is backed by the Business Growth Fund, maintained revenues at £30m.
Chief executive Leigh Howarth said:“Taken against a background of the well documented long-term impact of lower energy prices, our 2017 results are encouraging.”
The company felt the benefit of a cost reduction exercise started in June 2016 and stringent cost controls applied throughout 2017.
A spokesperson said as part of the cost cutting exercise STATS made 40 jobs redundant in the UK in 2016. He noted most oil and gas firms cut jobs that year.
STATS said more than 70% of turnover was generated from activities outside the UK in the latest year.
The company gained market traction in the US, Abu Dhabi and New Zealand, and built on its strong position in Canada and Malaysia.
A range of oil services business have tried to grow their international businesses to reduce their reliance on the North Sea amid cuts in spending in the area in response to the sharp fall in the oil price since 2014.
Mr Howard appears hopeful that the partial recovery in the crude price since late 2016 should provide a boost to the market.
“With a combination of improving oil and gas prices and the inroads we have made into new international markets, we expect demand for our products and services to significantly improve in 2018,” he said.
STATS has headquarters in Kintore, bases in Inverurie and Kendal and operations in the Americas, the Middle East and Asia.
The company became the first in Scotland to win backing from the Business Growth Fund in 2012, which invested £7.8m in the firm that year.
The fund provided further support in 2014.
It was formed with backing from high street banks following claims they had not done enough to support businesses amid the fall out from the financial crisis of 2008.
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