Directors of an energy sector company which fell into administration when the oil price collapsed have started new businesses.

Mike Jones and Martin Spurr have launched Red7 Offshore and Red7 Inshore Diving four months after the Red7 Group ceased trading and put 280 people out of work.

It comes after Sussex-based firm Atlantic Marine took on the lease for Red7Marine's former base in Great Yarmouth, and acquired two of its boats earlier this month.

Mr Jones, managing director, said: 'The drop in the oil price hit many companies very hard but we believe there is an upside to the current situation. Great Yarmouth has always been more competitive than places like Aberdeen, and in the current economic climate more and more customers are looking at the supply chain in our area to provide them with services they would previously have sourced elsewhere.

'This is a good time to be in business on the east coast and we believe there will be lots of opportunities for us in inshore and offshore diving, particularly in the exciting arena of offshore renewables.

'Red7 is a lean company with a huge amount of experience and an outstanding reputation for good customer support.'

He said the former Red7 Group had made a profit of £7.2m last year, much of it from Red7's offshore

operations in Great Yarmouth. Although Red7 Group had a considerable backlog of work in the Southern North Sea, the sudden and dramatic drop in the oil price had caused some of its customers to delay or cancel projects, affecting investor confidence.

'Sadly, on the day of administration itself the company received an order from SNS operator Perenco to deliver a £4m offshore inspection contract, although even this was unable to prevent closure. This is a good indication that work is out there and we have the skills to win it,' said Mr Jones.

'It was a tough time, and still is, but we are determined to rebuild

our business with a solid foundation that will provide good quality local jobs.'

Red7 currently has five former staff working on inshore projects, including diving engineers Craig Shiers and Stuart Clarke who are now both directors of the company.

Do you have a business story for the Eastern Daily Press? Contact business editor Ben Woods on 01603 772426 or email ben.woods@archant.co.uk