A Year of Headwinds and Our Strongest Financial Performance to Date
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“To be honest with you, this was not an easy year to be an engineering business in the energy sector. I’ll make that simpler, this was not an easy year to be a business in the UK.
A number of things have driven those cold northerly feels, increased business costs, uncertainty in and around Government and policy from Government all creating poor investment conditions in traditional and new markets. We’re being told that we can diversify, however, the replacement revenues don’t exist yet in terms of scale and the Government are hitting our customers hard with tax, licencing (or not licencing) and regulation. So, what do we do? We change our angle to the wind, adjust our weight and get going.
I have to say I am very proud of the team this year. They continue to find answers to these difficult questions and while others have lost customers, lost value or been through financial crisis - we have performed. The team has delivered, secured new work and remained profitable - some achievement.
The reasons for success matter to me. My trust in the team, their commitment to each other and their care for their customers has always been what has made us good. This year, that showed more clearly than ever. Our existing clients continued to believe in us with more of their work, we deepened relationships and extended our scope across service lines. That kind of loyalty doesn't come from any particular number or size of contract. It comes from the individuals of the Katoni team who show up and deliver every single time.
Perhaps the biggest step this year was in The Netherlands. This is not a move to replace UK revenues; there is traditional work for us there but there’s chance to step into new industrial projects too.
On the new things that happened last year - securing a new Frame Agreement with Bumi Armada was a real highlight. What made it notable wasn't just the win, but what came with it. I find it quite funny to hear the folk of Aberdeen tittle-tattle and gossip about wee Katoni. It has been interesting hearing our name in conversations and having people talking about us and our place in the industry. That doesn't sound like much until you remember it wasn't always that way. That kind of recognition is hard won, and we certainly don't take it lightly.
Not everything this year was straightforward, and I won't pretend like it was. Success is not linear - mistakes are made, and learning is required. What defines you is how you meet that and I’m proud of how the Katoni team has.
Looking ahead - we're in a good place. The pipeline is strong and we have opportunities to evolve on a range of strategic fronts. The team that produced such a significant year is, if anything, more capable and more motivated than twelve months ago.
That said, there is still much to do. The North Sea faces pressures that won't resolve quickly and the energy transition brings as much uncertainty as it does opportunity.
To our clients, our partners, and everyone in the Katoni family - thank you. Together, we deliver - always together. "
James Bream, Chief Executive Officer, Katoni Engineering
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