Interim boss Dave Smith staying on as permanent CEO with would-be replacement going this summer

Osborne is selling its Innovar茅 offsite business to Bowmer & Kirkland for an undisclosed sum with Dave Smith now staying on as chief executive at the business on a permanent basis 鈥� with the man earmarked to replace him leaving this summer.

The sale will see 115 staff at 拢35m turnover Innovar茅, which was started by Osborne 15 years ago and is based in Coventry, transferred across to B&K by the end of the month.

Osborne group chairman Andrew Osborne said: 鈥淭oday鈥檚 strategic changes will ensure our core business can be successful in the years ahead. Like everyone in the construction sector, we have seen challenges in recent months but we are well placed to continue and build upon our proud track record of delivery for customers.鈥�

Innovare Factory0271a copy

Based in Coventry, Innovar茅 has a turnover of 拢35m and employs 115 people

Smith told 黑洞社区 talks with B&K had begun last year. 鈥淏&K is Innovar茅鈥檚 biggest customer. [The sale] means we can stick to our knitting which is construction and support services.鈥�

Smith also revealed that he will be staying on as chief executive on a permanent basis having been appointed interim boss in autumn 2021 following the departure of Andy Steele.

Last November, the firm said it had recruited Mark Hoyland, the boss of affordable housing provider Orbit, as its new group chief executive.

But Smith, a former chief operating officer at Wates, said Hoyland, who only joined the business last month, has decided to step down and stay on as a consultant until the summer. 鈥淚t鈥檚 all amicable. He鈥檚 staying on to help me complete the strategy.鈥�

The Innovar茅 disposal means Osborne will be left with a 拢100m construction business, which carries out jobs in London and Brighton, and a 拢45m turnover public sector housing maintenance business which works mainly for London boroughs. It employs around 500 people from two offices in London Bridge and Reigate in Surrey.

Osborne has undergone a major rejig recently having sold its civil engineering arm 18 months ago.

The firm offloaded its 拢200m infrastructure division, which operated in the roads and rail market, to private equity in September 2021 making a 拢39.5m profit on the disposal which dragged the group to a 拢675,000 pre-tax profit in the year to September 2021 from a 拢15m loss in the 18 months to September 2020. But losses from the business it has kept more than doubled to nearly 拢46m.

Its results for the year to September 2022 will be due out by the summer.

Topics