Leading global deck machinery specialist, ACE Winches, has announced its consolidated results for the 12 months ending October 31, 2016.
Following a difficult two years for the energy industry, the Turriff-based company has delivered a positive performance in what continues to be a challenging time for the energy sector.
2016 saw a decline in turnover to £22.8m but a return to profitability. The decline in turnover is reflective of the on going reduction in activity in the industry and the impact of the tougher pricing environment.
EBITDA of £4.9m was achieved through a combination of tight controls on expenses and overheads and a strong focus on exports, with international sales in more than 50 countries, accounting for 75% of turnover.
Post the accounting period, ACE Winches has entered into a new partnership with multi-disciplined design, engineering and manufacturing company, Balmoral Group Holdings Ltd, who has invested £10m into the company.
A clear synergy was recognised by both companies who have seen success on the global stage and between them hold five Queen’s Awards for International Trade. With manufacturing business slowing for ACE Winches, the company has restructured to optimise global rental opportunities, helping to support the company’s ambitious growth and development plans.
Announced last month, the investment will strengthen and grow ACE Winches’ position as a leading mooring, lifting, pulling and deploying solutions provider. This includes opportunities to expand its equipment hire business on a global basis.
Alfie Cheyne, CEO and founder of ACE Winches is looking forward to the opportunities ahead: “ACE Winches has delivered a modest, but positive performance in what is regarded as “the hardest industry recession ever” due to a prolonged low oil price.
“The hard work of everyone at ACE has led to a promising outlook for 2018, which, alongside our new strategic partnership with Balmoral Group, is a clear indication of the optimism, ambition and resilience that exists within the global energy industry.
“Both ACE Winches and Balmoral Group have extensive experience of opening up new markets. We see the renewables and decommissioning sectors, in particular, offering strong growth potential both in the immediate and longer term.
“With the combined efforts and expertise of both teams we are confident we can grow the ACE business and brand sustainably and look forward to a mutually beneficial relationship with Balmoral Group.”
Jim Milne joins the ACE Winches board as non-executive chairman and Balmoral’s finance director, Bill Main, also joins as non-executive director.