Irish specialist engineering group Skanstec is eyeing substantial growth over the next four years after securing two new contracts in the Nordics that market sources say could add €50 million to its revenues over the coming years.
Focused on infrastructure projects in the energy and telecommunications sectors, the Clonmel, Co Tipperary-headquartered group was founded in 2021 by majority owner and managing director Declan Wynne, a finalist in the 2023 EY Entrepreneur of the Year awards.
Skanstec, which already has several projects in development in the Nordics, has signed two new contracts in recent weeks, one of which is with a major Danish electricity network operator. It is understood the Irish group will design and build multiple 60-kilovolt substations across the operator’s network, enabling larger quantities of renewable energy sources to be connected to the grid in the region.
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It follows the recent award of a contract to develop a 50-megawatt heat production facility in the region. Market sources have indicated the awarding of the two contracts could add as much as €50 million to Skanstec Group’s revenues over the coming years.
Mr Wynne, who declined to comment on the contracts, said the group — recently named the 2023 emerging business of the year and overall business of the year at the Tipperary Chamber Business Awards — was eyeing further growth this year.
Accounts filed for Skanstec Group late last year show it generated profits above €1.7 million after a near eight-fold jump in revenues in the year to the end of 2022, from €2.7 million in its first year of trading to more than €20.2 million.
Mr Wynne said 2022 had been a year of “significant take-off” for the business, which employed some 130 people last year. He expects the team to grow to 150 in the coming year with revenues having expanded to roughly €30 million in 2023.
Looking ahead, he said there were “definitely challenges” across the industry, due to supply chain anxieties and persistent skills shortages. However, Skanstec has “managed the difficulties quite well” and was primed for another strong year, he added.
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