Shepherd Offshore says it has a strong pipeline of property developments, having seen both turnover and profits fall in last year’s accounts.
The Walker based business specialises in property development and providing warehousing facilities for the offshore sector, mainly from its site in Walker, Newcastle.
Owned and run by the Shepherd family, the firm said its profitability has held up during the pandemic, thanks to being able to continue to trade through the lockdowns.
It comes after the firm posted accounts for the year ended April 30 2020, showing group turnover dropped by 20% from £31.49m to £25.10m mainly due to reduced levels of property development sales.
Operating profit also dropped, from £11.99m to £9.04m, while pre-tax profits fell from £12m to £9.1m.
It said income from rendering of services had fallen by 8.8% to £21.1m, while rental income remained consistent at £4m, the same figure reported for 2019.
Shareholder funds, however, grew from £14.3m to £18.2m, and staff numbers also grew during the year from 101 to 114 employees.
The accounts period ends a month after the 海角视频 went into its first lockdown, yet chairman Bruce Shepherd used the accounts report to detail work that has been continuing following the year end, despite the constraints imposed by the Covid-19 pandemic.
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During the year, he said the group had continued its property development activity and that it will fund further acquisitions using income from development disposals.
That has since been borne out through the firm’s acquisition of the historic former Swan Hunter shipyard following a deal with North Tyneside Council.
The landmark deal will, it is hoped, lead to the creation of a new energy park on the banks of the River Tyne, creating hundreds of jobs and attracting a wealth of firms operating in the burgeoning offshore sector.
In his report accompanying the accounts, Mr Shepherd said: “Due to the strong pipeline of property developments, the contracts in place for the key management services and the terms and duration of the lease agreements, the directors are confident that the results of the group and company will continue to be satisfactory.
“As all our major customers have continued their activities the company has operated throughout the pandemic and both lockdowns without furloughing any employees and has not applied for government loans or funding.
“Trading activity has remained at a satisfactory level producing margins and profitability in line with the projections.
“The post year end performance remains in line with forecasts with strong margins and satisfactory profits.”