BW Interiors, the Surrey-based fit-out contractor, is setting up a hotel division and hopes to double turnover to £50m after a strategic review of the business.
The review, undertaken by Portman Business Consulting, is due to be handed over to BW's management next week, but initial findings suggested that the business should plan to hit £50m turnover and £3m pre-tax profit by 2011. One of the ways it will do this is diversifying beyond its core office fit-out work into the lucrative hotels market.
The company is currently working on a business case for undertaking hotel work, which should be completed later this month. Mark Richards, BW Interiors managing director, said: "The business case will determine what resources we will need to do it. Chances are we will recruit more staff."
Richards added that the hotels division would not be set up as a subsidiary, but would be a department within the existing company. He said he was keen on the sector as it had become less competitive in recent years, thanks to hotels' growing reputation for being difficult places to work in.
The person implementing BW Interiors' business strategy is Amran Raja. He is one of three employees to have joined from Curzon Interiors since that fit-out company went into administration in March. A fourth joined two months prior to the collapse. Aside from Raja, two are now senior project managers and the other is a project manager.
Chances are we will recruit more staff for the hotel work
Mark Richards, BW Interiors
The news emerged as BW Interiors posted its results for the year to 30 September 2005 in Companies House this week. Turnover grew from £18m to £25m, and pre-tax profit more than doubled from £303,000 to £769,000.
Richards said: "The results are conservative. The commercial office market has been strong, which has meant that we have been in the fortunate position to being selective on the work we've been pursuing."
The company is almost back to the peak turnover it achieved in its second year of trading in 2000. The figure then was £27.5m, but the weakening of the commercial market in the first half of this decade meant that turnover shrank to about half that.
BW Interiors at a glance
Pre-tax profit: £769,000
Managing director: Mark Richards (pictured)
Clients include: JP Morgan, IBM, Orange, Prudential, Sport England
Projects include: a £1.2m strip-out and refurbishment contract for the Department for International Development in central London, and a £3.7m strip-out and refurbishment for Scottish Widows in central London.