Construction and civil engineering firm Andrew Scott has reported a strong rise in revenues and profit alongside a healthy forward order book providing a solid platform for further growth.
The family-run company, which last year moved into a new HQ in Swansea, saw revenues for its financial year to the end of June, 2024,climbing 15% on the previous year (£73m) to £84m, with gross profit increasing by 91% to £12.1m and pre-tax profit rising to £5.2m from £1.7m.
With a secured order book at year end of £155m it is forecasting revenues for its current 2024/25 financial year of around £90m, with a healthy carry over into 2025/26 of some £65m. Cash in bank at the end of financial year was £10.4m.
Managing director Mark Bowen said:“Andrew Scott has again strengthened its market position in the period under review by securing, extending, and renewing several long-term contracts and frameworks and work for new clients. These contracts and frameworks provide visibility and stability in the order book for our company.
“Careful project selection, strong risk management and a combination of pro-active cashflow, including prompt final account settlements and timely release of retentions , has ensured that we are in a position of financial strength. This coupled with robust tender selection, has allowed us to boost turnover and profit.”
Successes in 2024 included inclusion on all five Welsh public sector frameworks on lot sizes up to £100m and with a combined spend of over £2bn over the next four to five years.
This it said provides visibility and stability in its order book for the foreseeable future. Andrew Scott is currently delivering a portfolio of projects across education, health, commercial, logistics, and advanced manufacturing sectors.
Established in 1870 the company is now in the penultimate year of its five-year strategy plan and it on track to exceed revenue and profit goals.
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It directly employs more than 230 in Wales with five times more in its supply chain. It recently completed a 32,500 sq ft industrial and office park in Cross Hands, Parc Gelli Werdd, for Carmarthenshire County Council.
Its chairman Andrew Hoppé said: “The resilience afforded by our strategic approach, and our aim to ensure that we do not take on any undue risk and continue to carefully consider and evaluate the deliverability of every new project has enabled us to produce an exceptional set of results. Our solid balance sheet has allowed the company to grow turnover and profitability to record levels while maintaining a very healthy cash balance.
"We are now seeing a further shift in customer mindset from 'lowest bid' to 'best quality' with additional scrutiny placed on bidder financial robustness. This firm foundation has given us positive momentum and with a record secured order book, several pre-construction appointments and a strong pipeline of new work we are well positioned to achieve sustainable profitable growth and look forward to the future with confidence.”
Current projects include the building of a new eco park waste recycling facility that will support Pembrokeshire County Council’s waste and recycling programme.