A subsea engineering firm which carries out underwater projects for oil and gas firms recorded a slick set of profits despite falling turnover.

Tonbridge-based Jee Ltd – whose clients include BP, ExxonMobil, Centrica, Total and Shell – said challenging market conditions had been overcome by reducing its engineering and management structure.

Average staff numbers fell to 55 people in the year to April 30, from 67 a year earlier, as turnover fell to £7.2 million from £7.8 million, according to its latest accounts. However, the company managed to grow gross profit to £2.7 million from £2.4 million, increasing its gross margin to 37% from 31%.

Operating profits grew to £888,000, up from £269,000, with pre-tax profits reaching £891,000, up from £275,000.

It has reached number 25 in this year’s MegaGrowth 50, published in this issue.

Managing director Trevor Jee, who founded the business in 1988, said: “Following on from the right-sizing of the engineering and management structure in 2014 we have delivered a very satisfactory performance in the current year.

“This result has been delivered against a backdrop of extremely challenging market conditions and our strategy of sales-led growth with a proportion of flexible workforce is proving successful.

“We continue to grow our renewables business, particularly offshore wind power, and this will support us in meeting our strategic goal of establishing offering beyond the oil and gas industry.

“Our vision is to be first choice for subsea engineering and training in the oil, gas and renewables industries. We will do this by remaining independent, growing profitability and resiliently and earning loyal customers and staff.

“The oil and gas industry is facing challenging times. However, the business has adapted to this environment and the company is performing in line with the directors’ expectations.”