John Lawrie Group profits doubled in 2017

John Lawrie Group, based in Aberdeen, Scotland, in the United Kingdom, increased its revenue to £83 million ($107.5 million) and more than doubled its operating profit to £12 million ($15.5 million) for the year ending Dec. 31, 2017, according to a report the company released Sept. 3. 

The metal recycling, decommissioning and steel tubulars business experienced a private equity backed management buy-out in November 2017 . Four members of John Lawrie Group’s management team and existing shareholders – CEO Vic Sinclair, Financial Director Charlie Parker, Operations Director Dave Weston and Tubulars Director Iain Laing – in partnership with London-based Rubicon Partners, an industrial investor, and principal investment firm Grovepoint, bought out the majority shareholder. 

By December 2017, the firm’s metal recycling division expanded into Shetland Islands, Scotland, with the acquisition of Rova Head metal recycling facility in Lerwick, Shetland Islands. According to the news release, this facility reopened in February 2018 after undergoing a major infrastructure upgrade. The investment has benefited the local community since it has allowed the reinstatement of a service to uplift all makes of end-of-life vehicles on the Shetland Islands.

The company attributes its growth in revenue to its metal recycling division, which incorporates decommissioning services. In 2017, the division recorded its highest ever annual tonnage of scrap metal throughput, consistently exporting more than 10,000 tonnes (11,000 tons) per month to European steel mills. 

“During 2017, we witnessed an excellent performance across our whole group,” says Parker. “We have been able to focus on our core business and develop an exciting, fully funded growth strategy in partnership with our new investors. The acquisition of a new facility in Shetland adds to our existing metal recycling operating bases in Aberdeen, Montrose and Evanton, near Inverness. Our strategy for the metal recycling and decom divisions will see the continued expansion of John Lawrie Group into other parts of the U.K., which will enhance our service offering to existing and new clients.”

According to the news release, the company’s tubulars business continues to be a supplier to the U.K. and European foundation piling market, supplying redundant oilfield casing and drill pipe to the construction industry for use as steel piling. The product reuse is part of John Lawrie Group's contribution to the circular economy. 

In North America, the company says its tubulars division has grown in the last few years, establishing itself as a supplier of steel tubulars to the foundation piling sector. Since 2014, the division, based in Houston, has opened storage locations in New Jersey and Pennsylvania to service the construction market in the northeastern states.