黑洞社区

Turnover at Keltbray Group has soared 50% to 拢217m on the back of a large haul of work and renewed development activity in London.

The engineering, construction and demolition specialist saw turnover jump 拢72.2m to 拢216.9m in the year to October 2014, up from 拢144.7m, on the back of a strong performance in its demolition division. Keltbray鈥檚 pre-tax profit jumped almost four-fold to 拢7.9m, up from 拢2.6m.

The demolition and civils division increased turnover by 65.6% to 拢158.4m, while the piling and asbestos removal businesses more than doubled in size.

The majority of Keltbray鈥檚 major projects during the year were in the capital with significant wins including the demolition at London Bridge Station for Costain and Network Rail (pictured), the demolition of Chelsea Barracks, asbestos removal, demolition and temporary works at Earls Court, and structural demolition of Angel Court for Stanhope and groundworks at London Wall Place for Brookfield.

Keltbray has said that it does not expect its rail electrification businesses 2015 turnover will be 鈥渟ignificantly impacted鈥� by the 鈥減ause in some electrification projects鈥� announced by Secretary of State for Transport Patrick McLoughlin and sees a turnover in line with 2014 鈥渋f the spend on major projects is as programmed鈥�.

However, the firm added that while its other businesses turnover increased in 2014, its Rail E&C did not due to 鈥渁 failure to maintain turnover in new market areas and a reduction in Network Rail spend in the changeover from CP4 to CP5鈥�.

Keltbray said the group has a 鈥渟atisfactory workload鈥� and that the market in the medium term appears favourable, but sees risks from 鈥渋ncreasing labour and material costs鈥� and 鈥渙btaining the appropriate experienced and qualified staff to carry out the workload and the financial stability of our supply chain鈥�

To counter the risk of increasing prices the group said it is including an assessment of increased costs its tenders and has strengthened its HR and recruitment resource.

Keltbray said that the improved market conditions of 2013 in its demolition and civils business continued in 2014, increasing its turnover to 拢158.4m for the year compared to 拢95.7m for 2013.

It added that its piling and asbestos removal businesses both increased by over 100%. However 鈥済ross margins in the main D&C business were down on 2013, which reflects fewer but more profitable projects in 2013, some loss makers in 2014 and an increase in labour and materials costs as the market improves鈥�.

Keltbray chief executive Brendan Kerr said: 鈥�2014 saw a continued strengthening of our performance. This improvement has been driven by the demolition and civil engineering business stream, where experienced project teams supported by our in-house design capability, provide innovative solutions and delivery on complex challengin g projects such as Earls Court, Bradwell Power Station, Angel Court and London Bridge stations.

鈥淥ur piling and asbestos businesses are now established as major players in their sectors and allow us to offer an integrated service to our clients which cannot be matched in the UK market. As part of our works at Chelsea Barracks, the piling business was awarded a 拢10 million contract for secant piling that was successfully completed in a tight timeframe of 34 weeks.

鈥淭he asbestos removal business won a large framework contract with Royal Mail covering all their UK properties and a considerable project on the major development at Battersea Power Station. This is likely to be succeeded by further contract awards for our other demolition and civil engineering businesses.鈥�