John Turner spreads its bets
CONTRACTOR John Turner & Sons is reaping the benefits from a diversification strategy which contributed to a 34% increase in sales in the year to March 31, 2011 to £53.9m (2010: £40.2m).
The Preston-based contractor said that a series of actions undertaken during the recession were now beginning pay off, with opportunities arising from a new area office in Liverpool, new social housing contracts and improvements made to its own systems.
Chairman and majority shareholder John J Clarke described the 95 year-old firm’s results as “impressive”.
“The ongoing financial strength of our group has been a major benefit in securing many of our business opportunities,” he said.
“Our long term debt remains low and our significant cash and net assets continue,” he said in a statement accompanying newly-filed accounts.
The company’s pre-tax profits actually fell by 15% to £637,914 but Clarke highlighted a number of investments made during the year – not least the purchase of Manchester-based company TL Electrical, whose clients include the Co-operative Group, the Church of England and several local health trusts.
“This acquisition has proved a useful and profitable addition to the group by complementing the works carried out by our in-house electrical division,” said Clarke.
He also said the company had spent more on business development, particularly through tendering where bidding for contracts was becoming “more onerous”. Despite this, he said the benefits could be seen “through our current good order book and high enquiry levels”.
It has already secured £36m worth of orders for the year to March 2012, plus a further £19m for the year to March 2013.
During the year, the firm won the contract to build the new paper mill at Carrington in Manchester for Spanish giant Saica (right), log cabin leisure 
accommodation at the Barstondale Centre on the Wirral and a luxury private residential development on Merseyside.
Since its year end, it has also won a contract to build a new Booths supermarket at Milnthorpe in Cumbria and it is one of 14 contractors which were appointed to a £90m framework by new social housing firm First Choice Homes Oldham. It has also formed a consortium, NW3, with fellow contractors Lockwoods Group of Liverpool and FLP Construction of Rochdale to compete for more social housing work.
Moreover, Clarke expressed that he was “delighted” that planning had eventually been approved for the £80m redevelopment of the former Cottam Hall Brickworks site at Cottam in Preston following several years of negotiations. The group has an interest in the site, which will feature a new Tesco supermarket, a marina, new office and residential units, and a nature reserve.
“We look forward to carrying out construction works for this high profile, mixed use scheme,” he said.
The company finished the year with slightly improved net assets of £2.2m.
