Dundee-based oil and gas service firm Pacson Valves is focusing on future growth opportunities after securing a £3 million refinance package from Clydesdale Bank.
Pacson switched to Clydesdale Bank from its previous banking partner to take advantage of more flexible working capital facilities. Worldwide, the oil and gas sector continues to trade amid uncertain conditions following a decline in the price of oil.
Based in Dundee, where the company operates from a 50,000sq ft manufacturing facility, Pacson supplies bespoke high integrity valves to the global oil and gas sector. The firm, which employs about 95 staff, designs, manufactures and tests surface valves, subsea valves and pressure-containing equipment.
The company prides itself on being at the cutting edge of product design and continues to commit significant funding to research and development.
It also maintains sales operations in key oil and gas producing countries including the US, Norway, Australia and Brazil. Turnover last year (12 months prior to October 2014) was £13.6 million compared with £12 million the previous year.
John McLaren, Commercial Director at Pacson, said: “Conditions have been challenging but we’re confident we now have the banking products we require to support our long term growth strategy, thanks to Clydesdale Bank.
“Like many companies in our sector we want to ensure we are fit for the future and ready to grow when the market improves. Now we have a more convenient and flexible product that will help to future proof Pacson Valves and facilitate our growth aspirations.”
Andy Tait, Director in Clydesdale Bank’s Aberdeen-based Specialist and Acquisition Finance team, said: “We welcome the opportunity to work with Pacson Valves, an internationally respected supplier of specialist valve equipment to the oil and gas sector, as it seeks to grow following difficult trading conditions.
“As a Bank, we have extensive experience of working with oil and gas service firms and a deep understanding of the industry.
“Our specialist knowledge of and focus on different sectors helps to bring a challenge to the market giving small and medium sized businesses the speed and flexibility they require to achieve their growth ambitions.”