Pryme Group is on an upward trajectory for the coming year, after a transformative 2021.
The recent merger with Caley Ocean Systems and IMES International has enabled a wider scope of energy supply chain services – with energy, defence and other industrial markets highlighted as targeted growth areas for the coming years, and a pipeline of renewable projects lined up for 2022.
The Pryme Group is committed to building on recent success in the energy transition sector in the coming year, with continued growth in offshore wind being a key area for expansion, as well as servicing established customers in the oil and gas, nuclear and industrial manufacturing industries. Investing time, infrastructure and funding into renewable energy projects is vital to current and future business plans. Close to 45% of Pryme Group’s year-to-date revenues are from renewable/low carbon emission markets. Nuclear projects now make up over 30% of the year-to-date revenue in the financial year 2022 (FY22) and offshore wind 13%. Given the backlog and targeted growth areas these trends are expected to continue. In parallel with adapting its capability to serve customers in these high growth markets, Pryme Group continues to provide solid and innovative support to customers in oil and gas, defence and aerospace as well in other key sectors.
During 2021, Pryme Group has proved to be resilient. The Group’s turnover for year to 31st March 2021 was £14,876k, a decrease of 20% compared to the prior year as customer demand was impacted by the COVID-19 pandemic. Gross profit for the year was £2,920k – a 2% increase. The Group strategy to reduce overall costs and increase operational efficiencies is symptomatic of the overall energy sector’s activity in the face of adversity.
The merger has created new opportunities and enabled Pryme Group to form a supply chain partner powerhouse for a range of manufacturing and energy mix customers. Having settled into a larger and wider equipped profile, the business is more viable and attractive to prospective customers worldwide.
The Group continued to focus on cost reductions and increasing manufacturing efficiency to improve margins, as well as adjusting to lower volumes brought on by the COVID-19 pandemic. Adjusted EBITDA of (£588k) was an improvement of £1,172k and 67% from March 2020 as losses were further abated.
Tyler Buchan, CFO at Pryme Group commented: “The company is looking forward to expanding upon the growth it has experienced since the merger earlier this year. A considerably stronger balance sheet and backlog position Pryme Group for what is starting up to be a busy 2022. The primary sectors Pryme Group services are offshore wind, nuclear, oil and gas, and defence with this set to continue into next year. The opportunity to leverage existing knowledge, competencies and experiences gained through a varied energy solutions background is massive and will enable the growth of renewable energy projects within the Group while continuing to support the oil and gas client base. Revenue is expected to treble from the 2021 financial year results post acquisition and profitable outcome is forecast. Pryme Group enter 2022 in a strong and established position which will help drive growth expectations over the coming years.”