Essex contractor makes strides towards £200m target

Essex contractor Lakehouse has posted a 21% rise in turnover from £42.2m to £51.1m for the year to 30 September 2008.

Despite the rise, the public sector company recorded a 17% drop in pre-tax profit from £1.1m to £914,178 as result of a restructure.

The statement said it had incurred fees of £400,000 in relation to the process in addition to increased overhead costs associated with the move.

It said: “The company continues to focus on providing a high quality service to the public sector and this had protected the business from the worsening economic climate. Our strategy has been to build long-term relationships with local authorities by demonstrating our ability to complete projects on time and to a high standard.”

But it warned that increased competition as a result of the recession may squeeze its margins. “The company continues to work closely with key clients and monitors feedback from tenders submitted,” it said.

It ended the year with net cash of £2.7m and the salary of the highest-paid director fell slightly from £203,422 to £198,882.

Last month chairman Stuart Black told Building that the company planned to hit £200m turnover in three years.

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