Record revenues for Bibby Line Group

LIVERPOOL-based Bibby Line Group increased revenues 8% to a record £1.715bn (2013: 1.592bn) in the year to December.

The diversified Group said strong sales and profits growth in its offshore and marine services divisions had helped to offset weaker performance in others, notably its convenience retail business.

Bibby Offshore, which provides sub-sea services to the oil and gas industry, increased sales 46% to £383.6m (2013: £263.5m) thanks to new vessels being chartered and high utilisation rates of its existing fleet of dive support vessels, construction support vessels and sub-sea remotely operated vehicles.

Profit before tax, increased 34%to £52.3m (2013: £39.1m). Despite the strong performance, the Group cautioned that reduced oil prices were creating more challenging market conditions in the current year.

Similarly, the Group’s marine division – whose services span ship ownership, chartering, management, crewing, training and hydrographic surveying – achieved a 29% increase in sales to £105.4m (2013: £81.4m) and a near trebling of profit before tax to £10.0m (2013: £3.4m).

This, it said, was predominantly due to its Bibby Maritime subsidiary, where high utilisation rates of its floating accommodation vessels (Coastels) in Europe and Australia had led to record results.

Elsewhere, the Group’s retail division, which includes Costcutter Supermarkets Group (CSG) – the convenience retail management business – saw total sales fall marginally to £789.6m (2013: £806.7m) – predominantly a result of the sale of its Rhythm & Booze off-licence stores part way through the year and a reduction in volumes due to supply chain issues during the year.

Managing director Sir Michael Bibby, said: “Some outstanding performances helped the Group deliver record sales last year, despite challenging conditions in some of our business areas. The benefits of having a diversified group were clear as record profitability in some areas helped offset losses incurred elsewhere allowing us to take a long term view to invest to grow shareholder value.”

He added: “As we look ahead, continuing competitive pressure in our key markets, combined with geopolitical risks in many parts of the world and slowing growth in some of its largest economies, creates an uncertain backdrop.

“Our focus therefore remains on delivering a diversified portfolio of differentiated and market-leading services, while improving productivity and consolidating our position in core markets, as we adapt to the changing external environment.

“It is this approach which has continued to provide the foundation for success for more than 200 years.”

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