Aberdeen’s Balmoral Group has ended the year in a “satisfyingly robust position” despite shortages of materials, rising costs and logistics issues.
It was also despite taking a £3.2 million hit on a business relationship gone sour.
Balmoral’s support for and subsequent divestment of Turriff-based Ace Winches meant the company reported a loss before tax of £1.34 million and a pre-tax profits of just £3,000.
Meanwhile, employee numbers dropped as a result of the split from 758.
The company, which employs 552 people, just eked out a pre-tax profit as it notched up turnover to £99 million in 2022.
Nevertheless, chairman and managing director Sir James Milne, who founded the independent company in 1980, said: “Our investment in intellectual property, R&D, manufacturing and testing facilities has helped us through an unprecedented couple of years.
“We are beginning to see this strategy pay off with substantial orders being secured across the offshore energy markets for our buoyancy and protection solutions as well as winning orders from around the world for our epoxy and glass-coated bolted steel tanks.”
The firm said it continued investing across its divisions, including Balmoral Comtec, which is its main subsea buoyancy and insulation manufacturing business. It also operates Balmoral Tanks, which has a factory in South Yorkshire and Balmoral Park, it’s commercial property division.
Covering some 18 acres, Balmoral Business Park in Altens is home to three auto dealerships; Audi, Mini and Volvo, and houses @BalmoralHUB, which offers executive office space, meeting rooms and co-working facilities for up to 50 businesses and which is administered by business development social enterprise, Elevator.
The firm also completed a seven-figure investment new port facility at Montrose to enable work in the offshore wind sector.
Sir Jim, who was knighted in Elizabeth II’s last birthday honours this year said: “Our new 18,299 sq ft facility in Montrose, which has just become operational, presents opportunities for us in the advanced composites market as the quayside operation will allow us to manufacture and deliver large composite structures direct from shore to ship for both the renewables and traditional offshore energy sectors.
“Since year-end, we have been hugely encouraged by the significant uplift in activity across all markets which has resulted in order backlogs achieving record levels as well as seeing a significant increase in turnover in the current year.”
Despite the many challenges, the company’s accounts said it made donations to charity worth £2.1 million in the year.
It also maintained its long-standing support for north-east charity Friends of Anchor, which celebrated its 25th anniversary in 2022.
Established in honour of Sir Jim’s first wife, Jill, the charity is on track to open its new Anchor Centre – which will specialise in cancer care – in 2023.
Chairman and founding member of the charity’s fundraising committee, Sir Jim said: “Since 1997 the charity has contributed millions of pounds supporting four core areas; medical equipment, clinical excellence, research and wellbeing.
“An exciting time of growth and service development lies ahead for Friends of Anchor and Balmoral remains steadfast in its commitment to the charity.”
Sir James concluded, “Having worked our way through a couple of tough years we have emerged in a satisfyingly robust position, well placed to help our clients tackle the challenges they face. The professionalism, loyalty and commitment of our workforce underlines the vision we have for the future of the company.
“We have a strong balance sheet with significant cash resources. The outlook is very positive with improving profitability evident across all group companies.”
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