North Sea demand boosts Bibby Line Group’s profits

FAMILY-owned mini-conglomerate Bibby Line Group as reported a 50% surge in annual profits as its offshore business had a sparkling year.

The Liverpool-based company, whose interests span business finance, logistics, retail and marine services, said 2013 revenues jumped 12% to a record £1.6bn. Operating profits came in at £69.6m, from £46.4m in 2012.

The offshore division, Bibby’s second-largest after retail, grew revenues by 26% to £263.5m during the year amid strong demand from the North Sea oil industry for its fleet of diving support and remotely-operated vehicles.

Contract wins with Centrica Energy, Maersk Oil UK and Talisman helped boost coffers too.

Its marine business also benefitted from the extensive refurbishment of its coastal floating accommodation vessels in 2012, although this was offset by weak shipping markets. Overall revenue increased by 7% to £81.5m.

The retail business, which includes Costcutter, increased total sales 20% to £806.7m as the owned and managed stores increased to 2,500 with the inclusion of the MACE franchise acquired from Palmer & Harvey during the year.

Sales across its financial services and contract distribution businesses were flat.  

Managing director Sir Michael Bibby said: “Some exceptional performances helped the group deliver record sales, cash generation and profit during the year, despite challenging conditions in some of our business areas.
 
“A number of strategic initiatives and operational improvements underway across the business have already begun to pay dividends in the current year, whilst the conditions in our offshore and specialist marine divisions continue to provide a strong tail-wind.

“We therefore expect to see a more balanced contribution across the group in the year ahead, whilst the effects of a broader economic recovery should create further momentum in many of our markets.”

During 2013, the Group sold its interest in Foreland Holdings, the joint venture company set up to provide Roll-on Roll-off ferries to the Ministry of Defence under a PFI contract, and  Bibby Consulting and Support, a provider of employment law and health and safety advice.

More recently, the retail services division sold  6 off-license stores trading under the Rhythm and Booze brand to Crewe-based Conviviality Retail.