Powerminster Gleeson Services boosts profits as parent makes £20m loss

Powerminster Gleeson Services, the m&e maintenance service provider, made an operating profit of £1.1m (2007: £0.7m) on revenue of £19.5m (2007: £17.5m) and doubled its confirmed order book to £158.8m as at 30 June 2008.

The company increased its operating profit for a third successive year, as a result of maintaining its increased focus on the provision of property maintenance services. The business has substantially increased its long-term service and repair work for Registered Social Landlords and Local Authorities.

Contracts secured during the year include Avantage (Cheshire) and Leeds Independent Living Accommodation, with confirmed values of £29m and £46m, to be delivered over 30 years and 25 years respectively.

The company is seeking to extend its activities within the social housing sector throughout England. During the year, the firm invested in business development personnel so as to generate further organic growth.

Parent group M J Glesson reported a pre-tax loss of £20.8m (2007: profit of £8.3m) on turnover of £94.6m (51% down on 2007). Dermot Gleeson, chairman, said: “The poor market conditions experienced during the year to 30 June 2008 have shown no improvement in the first three months of the current financial year.

“The Board believes that the housing market will not improve until mortgage finance becomes more freely available and confidence returns to the wider economy. The timing of these events is not possible to predict with accuracy, but the Board does not anticipate any material improvement before 2010.”