It is tough but "increasing market activity... present significant opportunity" for one of Gloucestershire's most celebrated companies.

Like many firms whose prime interest is the oil and gas market Gloucester-based Advanced Insulation has been hit by a downturn in the sector.

Its annual result for the period to the end of September, just published, show an operating loss of £2.1 million (2018: £1.58) with revenue of £1.84m (2018: £1.62m).

As it states under the heading 'principal risks and uncertainties', "group sales are dependent on capital investment in the energy industry. Demand is still depressed following the protracted period of low oil price".

Aside from this, it cannot contain its positivity.

"There is increasing market activity presenting significant opportunities for the group," said the report, signed by Andrew Bennion, managing director of the firm which won its fourth Queen's Award in October last year.

"This coupled with the introduction of new products has enabled the group to forecast reasonable growth for 2020 and significant growth for 2021."

It added: "The group will continue to invest up to 10 pe cent of its revenue to support its extensive research and development programmes.

"These are focused on developing new products as well as enhancing the performance of the existing product portfolio.

"The group has begin to roll-up new products developed for the renewable energy sector as well as expand the product range into the wider energy sector.

"The policy is fundamental to ensuring the group will be well-placed to take advantage of future growth it the energy industry and keep the group at the forefront of technologies."