October 25 2014 Latest news:
Wednesday, July 23, 2014
The boss of Great Yarmouth oil and gas company Derrick Services (DSL) expects to hire nearly 40 extra staff this year to cope with a worldwide surge in demand for its products and services.
The buoyant prediction of managing director Mike Smith comes as group turnover for 2014 looks poised to reach £30m - exceeding financial forecasts by £5m.
Mr Smith said the exceptional growth was the result of a “combination of both new customers and increased business from established customers”.
He said: “In the last few years we have built upon our reputation of consistency and reliability in the industry. Customers look to us to take the risk out of their short term upgrade or refurbishment of rigs as DSL is now recognised as being a reliable contractor to get their work done on time and within budget and without compromising safety and quality.”
The privately owned drilling structures and construction specialist, based in Faraday Road on Harfreys Industrial Estate, has seen turnover rise more than 40pc on the same time last year, driven by a string of overseas contracts.
Recent contract awards include the upgrade of the derrick on a drill ship in Vietnam, two drill ship upgrades for ONGC of India plus a 15 rig inspection and recertification contract for ENTP in Algeria.
The firm which has bases around the globe is seeing very strong growth in both its UK and Singapore operations; the Singapore operation growth is due to investment in new fabrication facilities and infrastructure in 2013 which has helped increase revenue streams more than 10 fold.
The company currently employs 200 people across the group with 50 in Yarmouth; Mr Smith is predicting the creation of another 10 to 12 management and administration jobs and a further 20 to 25 offshore/site positions.
He sai9d: “In 2012 we experienced a very steep increase in work during the second half of the year which resulted in our full year turnover increasing by around 50pc. This year it is the first five months that have driven the figures up, so we will have to wait to see where the second half of the year takes us.
“But based on the current order book and recent contract awards all the signs are that the growth can be sustained over the rest of the year and beyond. As a group we have issued over 500 proposals this year and we are now having to establish a dedicated proposals department in the UK to cope with demand.”
The recent growth spurt follows a restructuring period for Derrick Services in 2007 when it went through a high-profile pre-pack administration, which saved 73 jobs.
A £2m plan to transform Palmers department store in Dereham and a neighbouring eyesore into an upmarket supermarket and clothing shop has been confirmed.