With IPO in the bag, Sheffield Green plots training and listing spinoff for wind energy sector

Business Times

17 hours ago

[SINGAPORE] Getting its training centres off the ground took time and resources, but Sheffield Green is going all in on what it calls a 'new product line', with five to six centres set to be running by end-2025 – plus a potential spinoff and listing on the horizon.
Sheffield Green – itself a spinoff of oil and gas recruiter Sheffield Energy – supplies manpower for the renewable energy sector, particularly in offshore wind. After its 2023 Catalist debut, the company looked to diversify and realised that it was spending heavily on third-party training for its workers.
The Global Wind Organisation (GWO), a non-profit industry body, requires industry workers to be certified in basic training courses, with a mandatory refresher every two years.
Having its own training centre meant Sheffield Green's manpower arm could become a client of its training arm, allowing revenue to be recognised within the group, said chief executive officer Bryan Kee.
Running a centre solely for its own staff would not make financial sense, but Kee saw an opportunity. The company's existing manpower clients also needed to train their other workers, and could become paying customers of the training business.
The group teamed up with a UK-based training solutions provider as a technical consultant to launch its first centre in October 2024 in Taiwan, where most of its business is based.
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Seeing firsthand the strong margins in training, Kee realised this could be a lucrative new line. Sheffield Green thus set about exploring acquisitions, snapping up a business in Spain this June; it also hired a CEO, who came on board two months ago, to run the training arm.
One-stop training shop
Kee explained that, because GWO-accredited training is standardised, providers have to differentiate on price or delivery.
Sheffield Green's offering, while 'not the cheapest out there', was developed with a consultant that 'sets the standard' in the field, and is aimed at large corporate clients that prioritise quality over cost savings.
In Taiwan, the company currently runs three courses: GWO's Basic Safety Training, Advanced Rescue Training and Basic Technical Training.
Kee is looking to introduce more course types, and is in talks with one of the world's largest turbine manufacturers to add product training to the centre's list of offerings.
Citing a 2024 report by the GWO and Global Wind Energy Council, he pointed out the expected global shortage of skilled technicians to support the onshore and offshore wind sector. The report noted that, by 2028, more than 532,000 new wind technicians will be needed, with 40 per cent of these roles to be filled by new entrants.
'We do not want just to be a supplier to our clients,' said Kee. 'We want to be a long-term partner.'
Over in Spain, Sheffield Green's training centre already offers more than 10 courses; this expertise could be shared with its other centres. Its existing training customers could also be potential clients for Sheffield Green's recruitment business.
The decision to use acquisitions to expand Sheffield Green's training facilities was also financially driven. With an already-operational centre such as the one in Spain, 'straight away, you bring in the revenue', said Kee.
In contrast, it took a year of preparation before the Taiwan centre commenced operations in late January and began to generate revenue in February, though it has now broken even.
In the meantime, startup costs, including for rentals and instructor training, contributed to administrative expenses and finance costs, including in the first half of the 2025 financial year.
This is why the training business involves a mix of greenfield projects and acquisitions. 'We can afford it,' said Kee. In Taiwan, Sheffield Green has a term loan which will be fully repaid by March next year; in Singapore, the company has 'cash sitting in the bank', the chief executive added.
For H1 FY2025 ended Dec 31, 2024, Sheffield Green's revenue slipped marginally by 2.3 per cent to US$9 million, from US$9.2 million in the same period a year earlier.
Kee attributed the dip to the completion of two major projects, as payments for its manpower services are made on a recurring, 30-to-60-day basis. He noted, however, that these clients are expected to continue engaging Sheffield Green's services.
Meanwhile, the cost of services grew US$0.4 million or 6.5 per cent in that half-year, in line with the general increase in labour costs, as well as accounting for one-off tax-related costs for mobilising staff across borders.
While Sheffield Green had at that time borne the cost of its client in Taiwan taking the recruiter's employees across jurisdictions to service other projects, it has since engaged tax consultants to familiarise itself with different regimes and renegotiated contracts to pass on such costs.
For the period, the group recorded a net profit after tax of US$101,344, down from US$474,840 in H1 FY2024.
Adding more facilities
Based on May data, training now contributes up to 10 per cent of the group's revenue, Kee said. 'For a training business, the Ebitda (earnings before interest, taxes, depreciation and amortisation) can go as high as 40 per cent, depending on how you manage the training centre.'
He added that the premises and equipment are a one-time investment. While funds are needed for things such as maintaining equipment, rental and utility bills, instructor costs and support roles, these are not too costly.
Beyond the two training centres in Taiwan and Germany, Sheffield Green is also exploring the acquisition of UK-based training solutions provider Advanced Blade Repair Services, which Kee hopes to be finalised by end-August.
In February this year, it entered into a joint venture (JV) in Malaysia to set up and run a centre in Sarawak. The JV partner has bought the land for the development, and they target to have the centre operational in about 10 months, Kee noted.
Whether Sheffield Green builds from scratch or buys depends on several factors, including market maturity and the availability of acquisition targets.
In the UK, a mature market, there are a hundred big and small players already, Kee pointed out. 'Why should I be number 101?' But in Sarawak, where options are limited, he added that there is 'still room for me to play'.
Deciding where to base the training centres is not solely about where labour is needed, but also takes into account where international companies source their hires. Kee said that Malaysia, the Philippines and India are key labour export markets, thanks to their lower cost.
In addition to the centres already in the works, Sheffield Green is considering acquiring two more from a training solutions provider in the Baltics. 'By the end of this year easily, we will have at least five to six training centres that will be generating revenue,' said Kee.
Once that is all in place, the group plans to explore spinning off the training business and taking it public. 'If you ask me what's the long-term plan, this (training) business will be standalone,' he continued.
While Sheffield Green would remain its biggest shareholder, it would also be able to service its competitors as an independent training partner, said Kee.
The group is also considering two further greenfield projects in South Korea and Saudi Arabia, though these may not happen this year, as it plans to wait until the Malaysian greenfield centre is up and running.
Industry headwinds
While the offshore wind industry is still expected to grow significantly, it has seen recent setbacks.
US President Donald Trump's administration is attempting to stymie support for renewable energy sources, disrupting progress in offshore wind.
While Sheffield Green supplies manpower for several US-based offshore wind projects, it had held off on previously announced plans for a US office when a second Trump term seemed possible. 'There are plenty of other places I can focus (on),' Kee said.
'The capital (leaving the US) will go somewhere else for investment,' he noted, naming Australia as one potential beneficiary. 'So we are looking seriously at Australia as a market itself.'
And although macroeconomic challenges and underdeveloped infrastructure have led to several high-profile offshore wind project cancellations in various countries, Kee believes that there are 'still very good markets'.
In the UK, for example, oil and gas companies 'are all dying' despite there being abundant oil in the North Sea, as the government is 'pushing everything into offshore wind'.
So whether individual countries' governments are supportive of the renewables shift is an important factor that can help the industry weather the storm, he said.
In the close to two years since its listing, Sheffield Green's share price has not been able to reach its initial public offering (IPO) price of S$0.25 per share.
Asked what he would say to potential shareholders, Kee replied: 'Definitely, I think, with the diversification that we have with training… gradually that will contribute to the group, that will push up the profitability of the company.'
The company has remained profitable since going public, and has continued to pay dividends, he added. 'We will still continue to do that.'