146 1 July 2024 Success Stories
EIC Survive & Thrive 2024
EIC Survive & Thrive 2024
91 Success Stories July 2024
Story type
Proeon Systems A three-dimensional success story of diversification Dr Dorian Hindmarsh
Proeon Systems has successfully diversified its offering, reducing its dependency on oil and gas. The company now also provides complex and critical control solutions to sectors such as wind, onshore energy transmission and nuclear. As a result, the business has seen a threefold increase in revenue and a 40% growth in exports. The challenge - At the core of Proeon Systems offering is its ability to deliver complex and critical control solutions across many sectors where high levels of diligence, quality and safety standards are prevalent. For many years, those services were primarily delivered to the oil and gas sectors with the company supporting onshore and offshore clients, including their subsea assets. However, following the oil crisis that spanned between 2014 and 2016, the organisation recognised that its reliance on traditional energy sectors was not sustainable in the long term. With the firm’s revenue reliant on a cyclical, volatile and ultimately struggling worldwide oil and gas market, Proeon opted to explore opportunities for diversification. Indeed, it was much needed. Having grown its workforce from eight to around 40, the company was now struggling to retain its staff and knowledge, with growing concerns about retention and attrition. Diversification, the company concluded, could potentially resolve two issues at the same time. The soluti on - Upon joining the company as its new Managing Director in 2017, Richard Miller recognised that significant change was needed. He immediately set about making several strategic and structural improvements. This involved optimising departmental processes and supporting the expansion of the sales team to increase the market engagement efforts and approach clients in a more targeted manner. However, it wasn’t just an operational overhaul that Miller deemed necessary. Indeed, in the last five years, he has helped spearhead Proeon’s efforts to diversify into two new operational areas – nuclear and renewables. In the case of the former, the transition remains an evolving process. Having under-
Benefits ▸ Infrastructure projects now accounting for 40% of the company’s revenue. ▸ Clients satisfied with Proeon’s full in-house offering.
Key findings
Commercial Director
How is Proeon Systems thriving?
#resilience (main category) #diversification, #export
gone the Fit4Nuclear programme before undertaking its first project in 2017 for EDF, this first foray into the sector leant on and benefitted from the firm’s oil and gas knowledge. Critically, its unique ability to work with legacy equipment, and to provide support and upgrade pathways for a nuclear operator directly and its critical equipment was leveraged, with this work continuing to be a benchmark for its operations in the sector. Proeon’s entrance into the renewables market, meanwhile, has been a resounding success. Having undertaken its first offshore wind project back in 2018, the firm secured a major project break in 2020 owing to an inquiry for a HVDC control room SCADA system at a Dutch wind farm. Now in 2024, this aspect of Proeon’s revitalised offering has gone from strength to strength. Today, whilst each year is different, oil and gas projects account for just 10% of Proeon’s revenue, while conventional and nuclear power each contribute 5%. In the case of offshore renewables, the figure stands at 45%, with the company aiming to continue supporting the growing European wind market, where it is now established with three major offshore wind farms and a growing portfolio of clients. Back home in the UK, Proeon has also seen a major uptick in national infrastructure projects as the country ramps up efforts to both decarbonise and head towards a cyber-secure future. Now accounting for a further 40% of the company’s revenue, its uniquely skilled team of engineers are developing some of the most robust and reliable control packages to support many large energy developments throughout the UK. In all cases, Proeon’s full in-house offering has proven to be popular with clients, the company also willingly collaborating with other partners to secure additional expertise and achieve better outcomes as is necessary. With around 80 specialist discipline engineers and support staff at Proeon, strides are being taken across its nuclear, offshore wind, national infrastructure, and hydrogen offerings, the firm stands in good stead to excel as its three key markets continue to provide growth opportunities.
For industry ▸ Accept that failure is good, you can’t learn from success. ▸ Confront the challenge to do the right thing when it comes environmental issues, business practices, getting in touch with local communities, retain and attracting skills, etc. For government ▸ Implement a humanity-first agenda at any cost, no excuses.
Proeon Systems at a glance: Key products and services: complex and critical control solutions across many sectors where high levels of diligence, quality and safety standards are prevalent. Main industries served: ▸ Offshore renewable energy – 45% ▸ Conventional power – 5% ▸ Nuclear power – 5% ▸ Oil and gas – 4% ▸ Others (energy): gas grid and infrastructure – 40% ▸ Others (non-energy) – 1% Headquarters: Norwich, UK Year established: 2003 Number of employees: 80 (Proeon Systems), 14,000 (Group) Revenue: £10m (Proeon Systems), £1.4bn (Group) Revenue from exports: 45%