Jackdaw approval should prompt North Sea supply chain firms to ready finance, tax, and back-office processes - Azets

Businesses across the Northeast of Scotland’s energy supply chain are being urged to prepare for new opportunities following approval of the Jackdaw gas field development, with advisers at accountancy and business advisory firm Azets warning that financial and operational readiness could prove critical to winning and delivering new work.

With the first gas from Jackdaw expected as early as this month, the project provides greater certainty for companies looking to secure contracts supporting North Sea activity. Engineering firms, manufacturers, logistics providers, technology businesses, and specialist subcontractors could all benefit as work progresses.

However, Azets says businesses should look beyond securing contracts and consider whether their financial systems, tax arrangements and back-office processes are equipped to support increased activity.

Gordon Baird, Customs and Excise Director, said: “Jackdaw’s approval is positive news for the North Sea supply chain, giving businesses greater clarity over an important source of future activity. For companies hoping to secure work, the priority now should be making sure they are ready to respond when opportunities arise.

“Winning a contract is only part of the challenge. Businesses also need to be confident that their finances, VAT and customs arrangements, payroll and wider administrative processes can support the work efficiently and profitably.

“Many specialist suppliers operate with relatively lean management teams, and the demands of a new project can quickly stretch the time and resources available to deal with complex financial and compliance matters. Having the right professional advice and a reliable financial back-office can help businesses stay focused on delivery while protecting cash flow and margins.”

Azets says companies considering a return to the oil and gas sector, or looking to build on existing relationships, should use the period ahead to assess their readiness. While some businesses have diversified into renewables or reduced their exposure to oil and gas in recent years, Jackdaw could provide an opportunity to build on the North East’s established energy expertise.

The firm highlights several areas where early preparation can make a commercial difference, including VAT recovery, customs duties, international trade, employment taxes, payroll, contractor arrangements, and working capital.

Importing equipment, moving goods across borders, and bringing people into the UK or deploying them overseas can all introduce additional costs and administrative requirements. Without the right arrangements in place, customs duties can erode margins, delayed VAT repayments can put pressure on cash flow, and compliance issues can create unnecessary disruption when projects are already under way.

Gordon added: “Businesses understandably concentrate on winning work and getting teams mobilised, but the financial and administrative foundations behind a contract are just as important.

“Reviewing contractual arrangements, understanding VAT and customs obligations, checking payroll and employment tax processes, and making sure there is sufficient cash available to fund the early stages of a project can all help prevent avoidable problems.

“Professional advice can help identify risks before they become costly issues. For businesses without the in-house capacity to manage every aspect of their finance function, having the right external support can provide the expertise and capacity needed to manage growth, maintain compliance, and keep the business running smoothly.

“The companies that prepare now will be better placed to respond quickly, deliver new contracts successfully and make the most of the opportunities Jackdaw may bring.”

While the approval of Jackdaw represents a significant development, the future of Rosebank remains subject to further decisions. Azets says businesses should nevertheless take a proactive approach, ensuring their financial and operational foundations are strong enough to support opportunities across the wider energy sector.

Azets works with businesses across the energy supply chain, providing accountancy and business advisory services including VAT and tax advice, audit and assurance, payroll, corporate finance, and support with financial management. The firm can help businesses strengthen their financial back-office, manage compliance requirements and plan for sustainable growth as activity and demand evolve.

Gordon concluded: “The Northeast has a highly experienced energy supply chain, with specialist skills and expertise built up over decades. Jackdaw presents an opportunity for businesses to build on that strength. With the right advice and financial support in place, companies can put themselves in a stronger position to take on new work and turn opportunities into sustainable commercial success.”

Azets is a UK top 10 accountancy and business advisory firm. Its Aberdeen office is part of a Scottish network that also includes Inverness, Perth, Ayr, Edinburgh, and Glasgow. For more information, visit www.azets.co.uk.