Orion aims high despite the impact of the pandemic
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Cost control during the pandemic is a key focus for Highland-headquartered recruitment expert Orion Group.
The international firm which provides personnel for a range of sectors, including energy and manufacturing, experienced drops in turnover and pre-tax profit in the year ended December 31, 2019.
A strategic report accompanying the firm’s latest accounts, written prior to the current lockdown, stated: “During 2020 the global economy has been significantly impacted by the Covid-19 pandemic.
“The group responded quickly by implementing a number of primary initiatives which included the use of remote working and other available technologies to protect the health, safety and welfare of its employees and ensure continuity of service to its clients.
“In the oil and gas sector, the pandemic has also had a knock-on effect on global oil prices due to the significant reduction in demand that it has created. These factors have contributed to reduced contractor activity and further downward pressures on contractor rates and margins for the group during 2020.
“In response to this, a number of cost reduction measures have been implemented across the group. Cost control remains a key focus of the directors as the group continues to deal with the ongoing impact of the pandemic and lower oil price.
“While the group acknowledges that the prolonged effect of the Covid-19 pandemic has created a number of fundamental uncertainties in the wider economy, the group’s solid equity base and lower level of gearing provides it with the financial strength to deal with the impact of the pandemic on the group’s activities.”
Turnover dipped from £283,983,000 in 2018 to £276,347,000 in 2019. For the same period, pre-tax profit dropped from £6,381,000 to £3,920,000.
Market conditions in the oil and gas sector impacted turnover and operating profit was lower due, in part, to investment in staff and facilities as part of ongoing sector diversification.
The firm continues to monitor opportunities overseas. The report added: “The oil and gas market is a key sector for the group but there are other business streams which are also significant contributors.”
The average number of employees increased from 219 in 2018 to 221 in 2019, while staff costs decreased from £9,138,000 to £9,085,000. A directors report stated: “The group will continue to develop business management systems with an emphasis on safety systems. The directors will also selectively invest in people and facilities to ensure that the group remains a sustainable and world-class recruitment business.”
