Welding and pipeline specialist Serimax which has base near Evanton hit by impact of Covid-19, financial reports reveal
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An Easter Ross firm made more than 60 people redundant last year due to the pandemic.
Serimax – which provides welding services in the construction of pipelines for the oil and gas industry – dropped further into the red in the year ended December 31, 2019.
Following the accounting period, it has been impacted by Covid-19, a drop in oil price and financial restructuring at its parent company, French firm Vallourec SA.
This came despite Evanton-based Serimax describing 2019 as a stronger year for the company with higher levels of production in the UK with several large contracts being completed.
A strategic report accompanying the firm’s latest accounts stated: “The Covid-19 global pandemic created disturbances for Serimax – as it did for all companies.
“The initial impact saw a three-week shutdown in March 2020 to establish Covid-19 safe-working practices, as Serimax operates in the essential oil and gas sector of the economy.
“Following recommencement of operations, a gradual phased return to work was undertaken, all existing contracts were honoured and completed to time, which was an exceptional achievement given the changed work environment in place for operations.
“Meanwhile all staff who could work from home have done so, and the majority of office-based staff continue to be home-based at present.
“2021 will see a decrease in revenue and drop in activity for Serimax as the lag of delayed demand for fossil fuels catches up with the completion of existing projects commenced prior to Covid-19.
“Serimax has already reduced the size of workforce to match the levels of activity and will continue to respond as the demand for projects varies, alongside the necessary local health rules regarding Covid-19,” the report added.
It also said that the price of oil in 2021 had rebounded quicker than forecast, providing cautious optimism that demand for Serimax services will increase later in 2021 and into 2022.
Turnover increased in 2019 to £44,006,495, up from £18,648,469 in 2018. For the same period, pre-tax losses moved from £2,812,637 to £3,446,583.
Brexit has caused little disruption to Serimax operations, according to the report.
The firm has received more than £810,000 in pandemic-related support money from the UK government.
In September, Serimax undertook a headcount review that led to six administrative and management staff and 60 production staff being made redundant at a cost of £234,000.
This came after the average number of employees increased from 152 in 2018 to 256 in 2019, while staff costs rose from £10,418,402 to £17,839,462.
The firm also made £1100 in charitable donations in 2019, down from £3400 in the previous 12 months.
