Red7Marine Limited
Projecting well after cash boost
Red7Marine Limited
Red7Marine is projecting well after cash boost Driven by opportunity in a changing market, this marine specialist is involved in important projects across the country and is looking to continue its ongoing innovation and acquisition of assets Written by: Thomas Johnson Produced by: James Pepper 2
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UK-based provider of offshore oil and gas plant and equipment, diving services and marine project work, Red7Marine is set to expand having recently secured over £30 million of new development funding from Perwyn, a private equity firm and Red7Marine’s new banking partners. The investment will be spent on acquiring new assets to support the ambitious expansion plans in Red7Marine’s Offshore, Coastal and Inland operations.
This includes the recent arrival of a US $12 million second offshore supply vessel, Red7 Tonjer, increasing the company’s capability for project work and further reducing the need to charter vessels. Nick Offord, Managing Director of the East of England-based company, said: “It increases our company profile and credibility in the market. “It also gives us control. People don’t like firms bidding for work without the backup of being able to 3
Red7Marine Limited Projecting well after cash boost put in their own vessels. “If we say we will commit to something we will commit to it and owning key assets reduces our reliance on brokers for finding us vessels and jack-ups.” Power projects Red7Marine, which has offices and depots in Great Yarmouth, Ipswich, Aberdeen, Exeter, Colchester and Wrabness, is involved in construction projects across the entire UK, Europe and as far afield as the Falklands. Projects include some of the biggest in the world and it is looking
to further its presence in the now lucrative wind farm market. One of its specialties is in jack-up barges and it is currently working for BAM Nuttall Ltd on the Liverpool 2 Project to double container capacity at the Port of Liverpool. Also, for the past 18 months Red7Marine has had a jack-up barge at the River Forth in Scotland, where Europe’s biggest current construction project is underway to build a new bridge across the river. Additionally, the company is currently helping develop an exciting tidal energy project in Swansea, Wales. If successful, the Swansea
Nick Offord, Managing Director 4
Barrage will be the first in the UK to harness the power of tidal energy. Offord, who formed the company by merging his firm, Haven Ports Limited with Mike Jones’s Anglian Marine Services in 2008, said the £756 million tidal lagoon could provide power for 120,000 homes for 120 years. He said: “It is creating quite a lot of excitement. This resource can be harnessed in a way that makes economic, environmental and social sense.” The company worked with international engineering and construction group Costain on
the feasibility side, with a view to creating a budget construction plan. Offord’s firm carried out site investigation for the project with one of its 250-tonne jack-up barges back in mid-summer 2013. It drilled boreholes so that a design could be carried out by WS Atkins Plc for a budget construction plan worked out by Costain. Rapid rise and steady growth The company’s current turnover is roughly £45-50 million and it employs 120 workers, not including temporary contract staff on various projects.
We are innovators; that is who we are, we are opportunity-driven innovators in the market” — Nick Offord, Managing Director
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Red7Marine Limited Maritime leaders in the offshore industr y
Vessel management
Crew management
Consultancy
Offshore renewables
www.adpsltd.com
Projecting well after cash boost
www.adpsltd.com
+44 (0) 1752 226797
ADPS Ltd, Mayflower House, Armada Way, Plymouth, Devon, PL1 1LD, UK
Red7Marine’s Haven Supporter “We want to show steady growth over the next few years, certainly in both the construction, wind farm and oil and gas markets,” said Offord. “Our new investment partner has an oil and gas background, so we are looking to do more in the oil and gas market with its assistance and the investment capital it has put into the company.” Red7Marine’s initial turnover in 2008 of £6.5 million accelerated rapidly thanks to increasing demand from the offshore renewables market and an early contract with Fortune 500 Company Fluor. It now has eight jack-up barges 6
in the market. When the two companies got together they bought their first as a joint venture. Offord said that the success of that jack-up barge has cemented the two companies together to form Red7Marine Group and the fleet of eight jack-up barges, several flat top barges, tugs and workboats enjoys good utilisation in the market. Red7Marine has just been named by The London Stock Exchange as one of the top ‘1,000 companies to inspire Britain’ (www.lseg.com/ resources/1000-companies-inspirebritain). Innovative opportunists In this respect the company is
STATISTICS
opportunity driven, said Offord, but is also an innovator. Taska marine is the joint venture company between Red7 and Challis & Sons Ltd., which is currently building its third boat at Ipswich, a four-ton bollard pull tug that combines maneuverability and power in the water with the added benefit of being road transportable. Another example of a development is an underwater excavation and jetting tool called SeaVex. This tool can be used for many different operations including the non-contact burial and deburial of cables and pipelines on the sea bed and carrying out dredging work around structures. It is a mass flow pump, designed in Red7’s Aberdeen office and manufactured in Great Yarmouth. Offord said: “We are innovators; that is who we are, we are opportunity-driven innovators in the market. “We build our own workboats and have introduced those to the market where we prefer to charter them but we have also had a number of purchase enquiries from as far afield as Uruguay and Russia. “So again that shows our level of innovation, the fact that we can build and operate our own tugs, there are not many companies in the UK that do that.”
Industry: Marine services Founded: 2008 Headquarters: Group head office is at Wrabness, Manningtree, Essex Key People/Titles: Nick Offord, Managing Director Products: Offshore oil and gas products and services, marine renewables, maritime inland subsea engineering and marine civil engineering services Revenue: £45-£50 million Employees: 120 Website:
www.red7marine.co.uk Visit us online:
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Red7Marine Limited Group Head Office Red7Marine Limited Ltd, Shore Farm Wrabness, Manningtree, Essex C011 2TG Tel +44 (0)1255 886710 Fax +44 (0)1255 886658 enquiries@r7m.co.uk www.red7marine.co.uk
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