Turnover rises to £337m as contractor plans to target mid-range hotel, food retail and affordable housing
Bob Rendell, chief executive of Leadbitter Group, has said the firm will target areas including the mid-range hotel sector and food retail in order to offset cuts in public sector spending.
Speaking after the firm announced its results for 2009, Rendell said the company would also seek more joint development opportunities with housing associations, and would take more stakes in affordable housing and mixed-use schemes.
He said: “None of the parties have told us the extent of any cuts but we are expecting 2011 and 2012 to be difficult years. The only way to compensate is to do more in other areas and fight for a bigger slice of a smaller cake.”
The public sector accounts for 70% of turnover at Leadbitter, but Rendell said the balance would alter in coming years to reflect spending changes. He added: “In terms of the office, commercial, industrial and non-food retail markets, there are no signs any of those have picked up at all.”
Despite the fact that 2009 was a poor year for some of its peers, Leadbitter increased turnover by 4% from £322.8m to £337.2m, which Rendell said reflected the performance of all three of
its divisions: construction, affordable housing and low-cost open market housing. Construction accounted for half of turnover.
The group, which is based in Oxfordshire and owned by Dutch group Heijmans, boosted pre-tax profit by 20% from £10m to £12m, which increased its profit margin from 3% to 3.5%.
In 2009 it also secured places on the Homes and Communities Agency’s delivery partner panel and the Partnerships for Schools academies framework.
The company ended the year with shareholder funds of £26m. and the remuneration of the highest paid director fell from £872,423 to £842,423.
Rendell on …
“The result last year was down to sheer hard work and the quality of our staff. Being the size we are enables us to ensure high levels of quality.”
“Our aim is to strengthen our position on large regional and national frameworks”
Turnover in 2010
“It will be broadly similar although may fall about 5%”