Stable Services Quadruples in Size Under New Regime

Aberdeen-based Stable Services is announcing its latest accounts which show that the company has grown four-fold since the business was acquired by Stable Holdings in December 2006.

The latest accounts, for the year ending December 2007, reveal that turnover has risen from UK7 million to UK28 million in the period and that profits (EBITDA) are just over UK4 million.

Stable Holdings, set up by entrepreneur Rod Coffey to capitalise on the increasing global demand for drilling equipment, acquired the entire share capital of Stable Services last year and then went on to acquire the trade and assets of Rig Services International in the summer of 2007.

Today's figures are for Stable Services' UK business. However, the company also has subsidiaries operating in Norway, Libya, Canada and the Middle-east, whose combined sales bring the global turnover to UK28 million. This is forecast to reach UK45 million by the end of 2008.

The company is now firmly on track to become a global market leader in the supply, manufacture and rental of oilfield products. In the last six months it has established an engineering capability to provide added-value technical solutions and set up a new company to develop proprietary tools to expand their product range.

Stable Engineering and Design Ltd. is already designing and developing novel technologies for the rapidly-expanding bottom hole assembly market. Bottom hole assembly is the term for components involved in the lower end of the drill string.

Chief executive officer of Stable Holdings, Rod Coffey, says: "In a relatively short period, we have effectively transformed the business. A new management team and more effective and robust processes were shortly followed by increased rental capability in the form of Rig Services' business. This was complemented by the increase in our global coverage through offices in Norway, Canada, Libya and the Middle-east.

"We are now well positioned to capture an even bigger share of the rapidly growing global bottom hole assembly market.

"The decision to add engineering and design capabilities makes us a technically competent company, not only able to source, supply and manufacture products but also to add value in terms of developing technical solutions to the increasing challenges of drilling around the world.

"The last 12 months have been considerably challenging. Growing so quickly to meet increasing customer demand is not without its problems, but despite those we have demonstrated that we can source and deliver the right products at the right time for our customers. I would like to pay tribute to our bankers, RBS, who have continued to support our plans and our global ambitions.

"We will continue with our aggressive growth strategy, focusing on adding value to our service and investing in stock and machine shops around the world. We are currently looking at another two strategic overseas locations and our strong financial position means that we can do so with relatively low gearing."

The company now employs 110 around the world, with 80 based in Aberdeen.