Directors attributed the revenue decline largely to reduced activity in the offshore energy market. According to newly filed accounts, the loss primarily reflects exceptional charges of £11.7m, including impairments relating to intercompany receivables and subsidiary investments, which also contributed to a steep fall in net assets, from £15.3m to £3m.

The UK remained the company’s dominant market, generating £92m in revenue. The Middle East contributed a further £20.5m and Africa £6.4m.

Despite the difficult trading period, the Bridge of Don-based firm’s directors struck a confident tone. They believe the business is well-positioned to capitalise on investments made in overseas markets and product lines, and to benefit from expansion into the renewables and industrial sectors. Further growth is expected through broadening its service offering within existing territories while diversifying into new geographies.

Average staffing levels dipped slightly to 1,262 employees, down from 1,320 the previous year. A £4m dividend was paid in February, after the reporting period.

Founded in 1975 by brothers Alf, George and Gordon, Sparrows Offshore Services began by providing specialist crane and lifting services to the nascent UK offshore oil and gas sector. From its North Sea roots, the firm expanded into crane maintenance, installation and operations, before becoming part of the global Altrad Group in 2022, when the industrial services giant acquired the company in a deal that transferred around 2,000 workers.

Now operating under the Altrad Sparrows banner, the company’s reach spans the North Sea, Gulf of Mexico, Middle East, Asia Pacific and West Africa. It has been investing in new facilities in Abu Dhabi, Kazakhstan, Qatar, Saudi Arabia, Australia and the United States.