.gif)
For the year to 31 December, the Nottinghamshire-based group reported a 14% increase in revenue to £164.5m. Profit before tax and exceptional item was up 18% to £3.71m.
Civil engineering, highways and utilities divisions all reported improved revenue and profits, thanks mainly to framework and long-term contracts. Only the building division made a loss.
Chairman Robert Moyle said: “The building subsidiary continues to be the most affected by the continuing economic downturn and, therefore, returned a loss in excess of that forecasted of £0.57m on revenue of £22.0m. Revenue was 37% below budget due to poor weather at both the commencement and the end of the year and reduced progress on the major scheme in the current portfolio. Margins remain positive, but at an extremely low level, and this coupled with the low Revenue has contributed to the loss. A thorough review of the business has now been undertaken and further overhead reduction instigated along with a revised marketing strategy. The division enters 2011 with an order book of £20m and tender opportunities are now on the increase.”
The civil engineering division reported revenue up 1.2% to £51.2m and profitability rising to £1.96m, thanks to largely to water sector framework contracts. Mr Moyle said: “Outside of the water frameworks the core areas of operation, namely power, waste and rail, remain extremely competitive with two contracts in the power sector producing losses during the year. Tender opportunities and repeat business remain scarce, but the existing frameworks, allied to the recently obtained Anglian Water LDP framework, should lead to future forecasts being achievable.”
The highways division grew during the year on the back of increased expenditure with major local government frameworks such as Liverpool City Council and the development of new markets. Revenue increased by 32% to £13.5m with profitability marginally increasing by 3.8% to £220,000. “Contracts are being secured at extremely competitive margins, but are still delivering returns,” Mr Moyles said. “The division has developed a particular expertise and reputation in public realm contracts and to date these do not seem to have been affected by public sector cutbacks. Projects of increasingly higher value are being secured and the division enters the New Year with a healthy order book and revenue is expected to exceed that of the previous year.”
High demand for broadband helped the utilities division increase its revenue by 32% to £40.2m and profitability by 4% to £1.46m. The major contributor to this was the South Yorkshire Digital contract for Kcom plc.
Brian Evans, a co-founder of the company, retired form the board at the end of the year.
Got a story? Email news@theconstructionindex.co.uk
