黑洞社区

Osborne put its infrastructure business up for sale to concentrate on its development, property maintenance and offsite construction work instead, its chief executive Andy Steele has told 黑洞社区.

The business, which was put on the market last Christmas, was sold to London private equity firm Sullivan Street Partners for an undisclosed sum in August.

The departed infrastructure division will be chaired by David Fison, Steele鈥檚 predecessor as Osborne chief executive, and, according to its latest accounts, had a turnover of 拢270m in the 18 months to September. It employed just over 300 people during the period.

Steele said the business attracted early interest from the trade but admitted it quickly became clear that it would be picked up by private equity.

Explaining the decision to sell infrastructure, he said: 鈥淲e want to become a specialist rather than a generalist. We鈥檙e taking some of the volatility out that you get with pure contracting.鈥�

He said Osborne鈥檚 developments business was the one it 鈥渨ould drive the hardest鈥� with the division carrying out BTR, student accommodation and affordable family housing work.

Steele added the firm is also ploughing money into its offsite manufacturing business called Innovar茅, which employs around 80 people at a site in Coventry and specialises in work for the education and housing sectors.

鈥淲e鈥檒l be very focussed on housing and education. There鈥檚 so much demand for that, that it finds its way ultimately to the factory.鈥�

The firm, which made 65 people redundant last year, claimed 拢1.6m from the government鈥檚 Coronavirus Job Retention Scheme after furloughing 30% of its 900 staff last April during the first lockdown with everyone eventually returning by the autumn.

Steele, who last week formally took over as chair of industry group Build UK, was speaking as Osborne nosedived into the red during the 18 month period to September last year, turning in a 拢13.8m pre-tax loss from a 拢4.5m profit in the year March 2019. Its cash balance fell 拢10m to 拢13m.

Turnover during the 18-month period was 拢551m compared to 拢380m in the year to March 2019.

Meanwhile, former Wates chief operating officer Dave Smith this week took up a role as a non-executive director at Osborne.

Smith, who was previously Balfour Beatty鈥檚 managing director for its construction business in the south of England, is also non-executive chairman of Kent contractor Claritas.