New management team stabilises company following buyout as it records 11-month profit of £102,000
Gleeson Building has generated a profit in the eleven months since multi-million pound losses forced its parent company to sell the business to management.
Pre-tax profit was £102, 000 for the 11 months to 30 June compared with the £16.6m losses in made the year before. This was after writing off £473,000 cost linked to setting up the new business and £676,000 of goodwill. Turnover for the 11 months was £184m.
Chairman Martin Smout who led the management buyout of Gleeson said he had achieved his aim of stabilising the business, which provides a platform for the company to grow.
He expects pre-tax profit to rocket more than 600% to £741,000 in the current financial year while turnover growth will be more modest at £200m. This is on the back of securing an order book worth £300m – 9% greater than at the launch of the business.
MJ Gleeson sold Gleeson Building to management in June last year after it made a £16.6m loss. However Gleeson retains a 20% stake which Smout and his team can buyout after fives years.
The new team has instituted a raft of changes in order to improve Gleeson Building’s management and raise staff morale.
The company has launched a GB Development Solution to seek out development opportunities and established a joint venture with Oxford Hotels to build three and four star hotels around the UK.
The company has also opened a new office in Tamworth to improve its coverage of the Birmingham and Nottingham regions.