Grimsby engineering giant Engie Fabricom 海角视频 Ltd has reported a £20 million loss for 2019, plunging it further into the red.
A long-running project has been flagged as a substantial part of the reason, with almost £11 million of the deficit attributed to it, while “challenging market conditions faced widely in the oil and gas sector” were also highlighted.
Turnover fell 30 per cent, from £67.8 million to £46.6 million in the calendar year, the report just filed to Companies House has revealed.
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The multi-disciplined firm went into the pre-pandemic year with a £6 million loss in 2018.
Two huge investments by the parent company, French global energy firm Engie Group, have helped the business meet its obligations.
Eric De Ribaucourt, director and author of the results’ accompanying strategic report, said: “The directors have taken extensive steps to mitigate risks, and with the downturn in the oil and gas market - like many other companies in this sector - has successfully managed to grow its client base and portfolio in other industries. The directors have taken steps to reduce overhead impact on the results of 2020 and thereby protecting the profitability of the company in 2020 and beyond.
“The investment of £12 million in July 2019 and a further £25 million in December 2020 demonstrates the parent company’s continued support for the company’s future trading.”
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Less than favourable margins on projects were also highlighted, though staff numbers increased for the Europarc-headquartered business from 289 to 320 in the period.
Long-serving Richard Webster, left the post of chief executive back in February as the business faced up to the results, which had been due in December.
May saw the firm exit from an engineering procurement and construction contract that “had been performing particularly disappointingly,” according to Mr De Ribacourt.
Engie Fabricom runs a 13,615 acre heavy engineering, manufacturing and construction site at Immingham, while providing consultancy and design services, with offices operating in key industrial locations.
GDF Suez, renamed Engie in 2015, bought what was South Humberside Engineering and Fabrication Services in the mid-Nineties. Offshore wind has been one target area.
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