Ecosse Subsea Services Bags Bank Funding

Ecosse Subsea Services (ESS) has agreed a multi-million-pound revolving credit facility with full service bank Handelsbanken.

The new relationship should support the Banchory-based subsea engineering specialist as it tenders for larger renewables and power generation contracts.

The company said it was responding to fresh opportunities to deploy its technologies in emerging markets in the Baltic Sea, the Far East and USA, and forecast turnover in the current financial year will double to between £23-£25 million, with profits jumping to around £5 million.

ESS added it was also encouraged by signs of recovery in the oil and gas sector and predicted that technologies developed by the company for renewables projects would prove equally attractive for deployment on major oil and gas projects.

To sustain growth, ESS required a banking relationship which provided performance bonds and guarantees to its clients and Handelsbanken’s Aberdeen branch stepped in to offer full banking services, including a multi-million-pound revolving credit and bonds and guarantee facility.

ESS managing director, Mike Wilson, said: “Until now Ecosse has been self-financing but our track-record for completing high-value and complex subsea contracts, means we need a more rounded banking service. As we win larger contracts, our clients require us to have a more sophisticated banking facility and we are delighted to partner with Handelsbanken who have been supportive and flexible in their offering.”

Steve Rae, corporate manager at Handelsbanken in Aberdeen, said: “We were very impressed with the Ecosse team and their business model and how they have successfully diversified from focussing mainly on oil and gas to strengthen their position in the renewable energy sector.

“Both are key sectors for the Scottish and wider UK economy and we are delighted to provide the business with the banking facilities it required to support its growth plans.”