Denizen doubles turnover target
DENIZEN Contracts has set its sights on doubling this year’s expected turnover of £30m to £60m in 2012.
The Standish-based company’s commercial director, Barry Donoghue, told TheBusinessDesk.com that the business has grown rapidly since its formation four years ago and that it currently has a pipeline of projects valued at around £80m which are expected to come on stream within the next few months.
“The business has changed from a North West company with a turnover of £10m-£12m to a national business,” he said.
“In this climate, we’re fortunate to be working on some great opportunities.”
The company was set up four years ago by entrepreneur Paul Bolton, who is also a co-owner of Liverpool hotel development and management business Sanguine Hospitality.
Bolton, who had previously built residential property development businesses Charlton Homes to McInerney Homes in 2001, had become frustrated with delays to new hotel projects caused by building contractors and set up Denizen in 2007 to make sure work was delivered on time and to budget.
Donoghue is a co-founder of the business and one of three shareholders, alongside Bolton and construction director Bob Marley.
The business recently completed the first new build Hotel Indigo in the UK at Chapel St in Liverpool city centre, and is currently on site at schemes for Sanguine in Birmingham, Newcastle and at Hoylake in Chester – all of which are due to finish by the end of the year.
Next year’s pipeline already includes completion of a 120-bed Hampton by Hilton hotel underway at Exeter Airport, a 135-bed hotel at a former police station in Sheffield city centre and a 224-bed hotel and conference centre at the Kennedy Tower at Snow Hill in Birmingham.
The company is also expected to start on a 150-bed Hotel Indigo at the City Buildings site near Manchester’s Victoria station – opposite Co-operative Group’s £800m NOMA development.
“For us, this is the first new build project in Manchester. In terms of its iconic status, it will lift the brand to a new level. We’ll hopefully go on site by the end of the year.”
Donoghue is also looking to diversify its client base so that in the near term work for external clients reaches a level of around 40% of turnover. Its first major external project was the 154-bed Days Inn Liverpool hotel which opened in March this year.
The venue is managed by Sanguine but was built on behalf of developer Office Villages.
He said the company would focus its efforts on building hotels across the country.
“That’s the specialism we’ve developed over the last four years and we’ve developed relationships with a number of International brands including IHG, Hilton and Wyndham Group. 
“We’ve also developed relationships with high-ranking people within those organisations who would recommend Denizen to other businesses.”
He said that its aim would be to develop a similar style of relationship it has with Sanguine with other developers.
“We want to be in a position where they don’t want to work withing anyone but Denizen,” he said. This would mean that it avoids the competitive tender processes for commercial units where margins are currently thin or non-existent, but still delivers at a competitive price.
“When we looked at building Hotel Indigo in Liverpool, it had already been looked at by a national contractor and we did it for £1m cheaper. On a £10m build cost, that’s a 10% saving,” he said.
“We manage to build buildings well for clients but to do well for Denizen out of it.
“We do that through value enginerring and through securing good deals from our supplier base.”
