Clive Sayer slams QS firms that bid low to win work and perform poorly, as his company announces fall in pre-tax profit in full-year results
Baqus chief executive Clive Sayer has accused some QS firms of giving the industry a bad name by bidding low and performing poorly on projects.
Speaking after the company announced its first full-year set of results since floating on the Alternative Investment Market in December 2007, Sayer said profit margins had fallen as a result of increased competition.
He said: 鈥淭here is more competition out there so prices go down and some companies are bidding at or below cost. The problem is some are not then delivering a high quality service, which gives the profession a bad name.
鈥淪ome public sector clients have told me they are getting a poor service because they are forced to take the lowest price, which isn鈥檛 the case.鈥�
In the year ended 30 June 2009 turnover at Baqus rose 2% to 拢7.9m but pre-tax profit fell nearly a third from a pro-forma figure of 拢1.1m to 拢739,000.
The problem is some are not then delivering a high quality service, which gives the profession a bad name
Clive Sayer
As a result the margin fell from 13% to 9%.
Sayer said fee levels were down by anything between 10% and a third.
Despite the squeeze on margins, the company said it would have a war chest of up to 拢1m next year to fund its acquisition spree.
Sayer said he was talking to more companies than he was this time last year but said he did not expect to tie up any deal before next Easter.
He added: 鈥淭he business is in good shape. We are still investing in things like training and technology.鈥�
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