SME profile: 黑洞社区 envelope contractor explains how it is on track to post a 52% jump in turnover
Established in 1979, family-owned and run specialist contractor FK Group has 鈥済one through a lot of growth in the last two years,鈥 according to its chief executive Francis Keenan.
So much so that the full building envelope contractor 鈥 which specialises in roofing, cladding, glazing and maintenance 鈥 is on track to post a 52% jump in turnover to 拢70m in its current financial year to March, up from 拢46m last time round. This comes off the back of a 10% increase in turnover the previous year.
Pre-tax profit is also expected to increase this year by 43% to 拢3m, up from 拢2.1m.
Keenan (pictured, below) additionally forecasts the company will hit 拢85m-拢90m turnover by 2017, having already secured 拢40m of its pipeline for the 2016-17 financial year, with another 拢10m at preferred bidder stage. The firm also has 拢20m of its 2017/18 pipeline secured.
The business is headquartered in Altrincham, just outside Manchester, and also has offices in London, Romford, Birmingham and Doncaster where the firm is moving into larger premises.
Staff numbers at the firm have increased from 94 at the end of 2014 to 115 currently.
The firm also has an office in Dubai where it has partnered with fellow UK-based firms McLaren and Kingspan to pick up work in its core area: retail and distribution.
Maintaining diversity across sectors [will] help navigate them as they go up and down
Francis Keenan, FK Group
Headed up by managing director Steve Hall, FK Group鈥檚 retail and distribution business is going strong in the UK and has picked up work on a number of major schemes, including the 拢800m Manchester鈥檚 Airport City development with Beijing Construction Engineering Group.
At Airport City towards the southern end, FK Group is working on two schemes including an 815,000ft2 distribution shed for online retail giant Amazon with main contractor McLaren Construction.
Keenan said it has been 鈥済ood so far鈥 working with the Chinese contractor on the project, which he has found 鈥渜uite proactive鈥.
He added that on the back of the jobs he is planning to visit China this year to meet with Chinese suppliers 鈥渢o get to know more about how they work and how they intend to support their own local suppliers where appropriate鈥.
Amazon is one of the few retailers sill developing distribution hubs of this scale, Keenan said, as 鈥渢he distribution model has changed following the growth of the online market with retailers shifting to smaller regional hubs - which is something our retail and distribution side of the business is obviously benefiting from.鈥
Over the last five years the firm has also seen large growth from its diversification into facades, with these operations currently headed up by Paul Bentley.
This expansion has helped FK Group win work on Manchester United and Manchester City鈥檚 stadiums, while it is also currently working on Liverpool Football Club鈥檚 expanded Anfield stadium.
Keenan added that the firm will also be looking to be considered on both Tottenham Hotspur and Chelsea鈥檚 planned new stadiums.
There is, however, a 鈥渃apacity issue鈥 in the facades sector, Keenan said, adding that the 鈥渟killset is not readily available,鈥 which has prompted FK Group to set up an apprenticeship academy.
The academy is run in a university-style mould by Keenan鈥檚 sister Laura Keenan and is currently on its second lot of apprentices. However, Keenan thinks it will be three years before the firm starts to see the 鈥渂enefit in the business from the apprentice scheme鈥. He added: 鈥淲e are prepared to invest now and then these young people will be fully qualified and integral to our business and the industry going forward.鈥
He feels the investment is worth it to deal with the capacity issues in what is a 鈥渢ough labour market鈥.
Overall, Keenan, who took over running the firm from his father in 2008, said the firm has a good pipeline for the next 2-3 years and plans to maintain its 鈥渄iversity across the sectors to help navigate them as they go up and down鈥 and not be totally reliant on any single sector.
He adds that having no external investors means the firm is able to 鈥渢ake a longer term view and weather the storms of future ups and downs鈥.
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