SPACE Solutions, the office design specialist, has steadied profits and revenues in its latest financial year after an uptick in central belt activity offset the downturn in the north-east economy.
Pre-tax profits at the Aberdeen-based company, which is closing in on two acquisitions in its current year, were broadly unchanged at £250,000 in the year to the end of June.
Revenue was booked at £36 million, with the firm expecting to achieve turnover at a similar level in its current year.
Space Solutions, which has a headcount of 230 across offices in Edinburgh, Glasgow, Livingston, Dundee and Aberdeen, said it saw a sharp increase in work across the central belt.
Revenue generated by its offices in Glasgow and Edinburgh has doubled in the last two years, with recent contract wins including work with BSkyB, Scottish Borders Council, the University of Stirling and Heriot Watt University. It secured a total of 16 contracts last year.
However, growth in the central belt has been offset by market pressures in Aberdeen, where activity has been depressed by the plunge in the price of oil in the last two years.
The oil and gas downturn has claimed thousands of jobs and led to the collapse of a series of firms in the north east which serviced the sector in the North Sea.
Space Solutions, which secured a total of 16 new contract wins in its last financial year, said it was encouraged by its ability to maintain revenues in spite of the challenges in the north east, adding that the investment it made in the business last year has positioned it for future growth.
Steve Judge, managing director of Space Solutions, said: “While we have seen more traditional demand in uptake of space, particularly pronounced in Edinburgh and Glasgow with record levels of uptake in those cities, the vast majority of our public sector and commercial activity in the north east has been centred around optimising the use of space and thereby reducing the cost of occupancy – that’s obviously attractive to organisations as relative cost per person is reduced.”
Space Solutions, whose workload is split broadly between public and private sector work, appointed Derek Binnie as its first director of strategic growth during its last financial year.
Mr Binnie said: “Optimising workplaces for employees creates real value for businesses generating efficiencies and considerable savings going forward.
“We have invested heavily in our team and infrastructure this year, expanded our range of services and along with building stronger links with the property community as a whole we feel we are in really good shape for the future.
“We are also actively looking at growing the business by way of acquisition.”
The company said it is hopeful of making progress on completing deals for two acquisition targets in the fourth quarter, and looking to expand the business into England.
Mr Judge added: “Through working with an increasing number of national and international corporations and partners, we are getting into the frame for more projects and developments outside of Scotland.”
Space Solution expanded its Glasgow office by 50 per cent last October after winning new clients such as Abellio and Pure Gym.
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