1 July 2025 Sucess Stories
EIC Survive & Thrive 2025
EIC Survive & Thrive IX
131 1
Success Stories July 2025
Story type #diversification (main category) #scale up
Benefits
OSSO
▸ Successful diversification strategy resulting in contract wins, revenue and profit growth.
Bold diversification strategy drives rapid growth beyond oil and gas
▸ Diversification to new sectors and expansion to new markets.
Key findings James Scullion CEO
How is OSSO thriving? Through a strategic diversification from almost complete dependence on oil and gas drilling, OSSO has more than doubled its revenue in just three years. The company has successfully leveraged its expertise in fluid purification, water management and heat transfer to expand into new sectors including geothermal, construction, decommissioning and food and beverage. This bold approach has transformed OSSO’s business profile from 99% oil and gas drilling in 2021 to a more balanced portfolio, with 40% of revenue now coming from outside its traditional market. The challenge - As a specialist provider of integrated rental and maintenance services for fluid purification, water management, and heat transfer solutions, OSSO had built a strong reputation in the energy sector. However, by 2021, the Aberdeen-based company recognised its dangerous over-reliance on a single market segment, with 99% of its business concentrated in upstream oil and gas drilling. This extreme lack of diversification left OSSO highly vulnerable to factors beyond its control – project delays, fiscal uncertainty, and market volatility all posed significant threats. The outbreak of war between Russia and Ukraine further complicated matters, disrupting supply chains and affecting border crossings for site-based services. The COVID-19 pandemic served as a final wakeup call, highlighting the urgent need for a more resilient business model. With sales pipelines severely impacted, OSSO faced a critical choice: diversify or risk the future of the company. The solution - In 2021, CEO James Scullion and his management team committed to a comprehensive diversification strategy aimed at reducing the company’s reliance on oil and gas drilling while maintaining its core business. They set an ambitious target to shift from 99% oil and gas drilling to a more balanced 60% oil and gas and 40% other sectors by 2024/25. The strategy focused on leveraging OSSO’s existing rental fleet equipment and expertise to enter new markets. A key insight drove this approach: the company’s separation equipment for drilling operations could be redeployed
for applications in midstream, downstream and decommissioning projects. Similarly, OSSO’s expertise in high-temperature fluid management for drilling was directly applicable to the growing geothermal energy sector.
For young people ▸ Ask questions, you won’t be judged.
Perhaps the boldest move was the establishment of an entirely new business unit focused on water treatment for the construction industry. Based in Warwickshire, this division aims to help large-scale industrial and construction projects manage their environmental water challenges. This initiative required significant investment, with £200,000 allocated for R&D and prototyping, plus plans for £4.5m in new rental fleet investment by the end of 2025.
For government ▸ Energy policy in UK is not working – it’s not believable or clear: achieving net zero by 2030, abandoning oil and gas etc.
OSSO recruited seven dedicated staff for the new water treatment division and developed innovative remote monitoring capabilities that allowed equipment to be monitored remotely, reducing the need for continuous on-site presence. This technological advancement proved particularly valuable for securing contracts with major infrastructure projects, including HS2, where OSSO’s market-leading equipment is now deployed across various locations. The company’s entry into geothermal proved highly successful, directly applying its hightemperature drilling expertise from oil and gas. Following existing clients who were diversifying and investing in targeted promotions, OSSO saw geothermal inquiries increase by 90% in 2024, with 20 new bids submitted. A notable success came in late 2023 when OSSO secured a £500,000 contract with Eavor in Germany to provide technology that reduces downhole losses during geothermal well construction. The company has also made inroads into the construction industry, winning a £90,000 contract directly supporting the HS2 scheme in the UK to supply water treatment systems and advisory services. The implementation of this diversification strategy has not been without challenges. OSSO faced CAPEX, capacity and resource constraints as multiple new opportunities developed simultaneously, stretching the small business to its limits. Increasing headcount with the right quality of personnel required significant effort, and cashflow issues arose when core oil and gas clients paid late. Nevertheless, the strategy has delivered impressive results. OSSO’s revenue has grown from £4.1m in 2022 to £10.5m
For industry ▸ Be bold with your strategy, and don’t be afraid to try something new or to fail take risks to invest.
OSSO at a glance: Key products and services: service and maintenance company providing specialist fluid separation, water treatment and heat transfer solutions. Main industries served: ▸ Oil and gas – 70% ▸ Others (energy: geothermal) – 15% ▸ Others (non-energy): construction, food and beverage – 15% Headquarters: Aberdeen, UK Year established: 2003 Number of employees: 50 Revenue: £10.5m Revenue from exports: 55%
in 2024, with projections of £11.5m for 2025. Profit margins have increased from 20% to 25%, with expectations of reaching 35% in 2025. The company’s sector profile has dramatically shifted, with geothermal growing from 0% to 10% of revenue and construction from 0% to 10%, with both sectors expected to increase further in 2025. OSSO is continuing to target new opportunities in decommissioning and the food and beverage industry, particularly distilleries. Alongside this, it is seeking to expand its international reach, with focus on water treatment in Europe, geothermal in ME, and all markets in Asia. Thanks to the last few years of transformative action, OSSO has created a more resilient business positioned for sustainable growth in multiple sectors.