(Image: Getty Images)
A long-standing Scottish engineering company working with the oil and gas industry has posted a swing to a loss.
The firm based near Edinburgh, owned by Souter Investments, the family investment office of Sir Brian Souter, cited conflicts in Europe and the Middle East as “continuing to cause uncertainty within areas of the energy sector”.
New accounts show Premier Hytemp Limited reported a retained loss for the year ended September 30, 2025 of £990,000, set against a profit of £1.4 million the year before.
The company, founded in 1985 and registered at Kirknewton, has seen growth in its core energy sector with turnover increasing to £11.6m from £11.3m the year before.
While there was growth in turnover, earnings before interest, tax, depreciation and amortisation (EBITDA) of £406,000 was lower than the prior period when this was a £1.5m profit.
The decrease reflected “strategic investment made in the business by shareholders, increased competition and changes in underlying raw material prices”.
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The directors said: “Short term geopolitical and macroeconomic factors including conflicts in Europe and the Middle East are continuing to cause uncertainty within areas of the energy sector.”
However, they added that “the medium to long term prognosis remains strong”.
Scottish engineer swings to loss as global conflicts hit energy sector (Image: Getty Images)
We reported in 2023 that the company was acquired by Souter Investments, the family investment office of Stagecoach co-founder Sir Brian Souter.
Souter Investments took a majority shareholding in Premier Hytemp. The Souter firm backed chief executive Mohit Sreen in a management buy-out of Premier Hytemp.
Formerly part of a mini-conglomerate controlled by Sir David Murray, Premier Hytemp was sold by Murray International Holdings in 2012 in a £34.5m management buyout backed by Edinburgh-based private equity firm Dunedin.
Going concern
The directors said in the strategic report: “The company and group's management have prepared detailed forecasts covering a range of market conditions, including estimates of potential worst-case scenarios.
“These scenarios include stress testing, considering potential factors affecting its markets and customers, supply chain, operations and workforce, and other stakeholders including geopolitical factors, projected demand and revenues, projected costs (taking account of mitigation available), working capital requirements, and cash generation. "
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The report added: "Under all scenarios, the forecasts demonstrated that the group could operate within its available funding arrangements. Accordingly, as there is a reasonable expectation that the company has adequate resources to continue operating for the foreseeable future and to meet its obligations as they fall due, the directors continue to adopt the going concern basis in preparing the company financial statements.”
Core business
The company is a global provider of turnkey metals and precision engineering solutions for the energy industry.
It is a member of the international Premier Hytemp group of companies serving customers globally from operations in the UK, Singapore, and Malaysia, employing 120.
The group is a “market leader in the supply and precision machining of advanced metals, including specialist nickel alloys for use in critical components across complex high temperature, high pressure, and corrosive environments”.