Development consultancy hails successful ‘Brexit plan’ as revenue and profits rise
A successful Brexit Business Plan implemented three years ago has enabled a development consultancy to significantly increase both revenue and profitability.
In its annual financial results for the year up to 30th June 2019, Pegasus Group, which has two offices in Birmingham, has seen annual revenue grow by 9.8% to £28.18m (£25.66m in 2017/18), while profits increased by 18.6% to £4.75m (£4.0m in 2017/18).
Managing director Tony Bateman, who announced he will step down in July 2021, said: “Three years ago, following the vote to leave the EU, we put in place a Brexit Business Plan. As a result, we have managed in the last year to significantly increase our revenue and profitability, despite difficult trading conditions.
“The results represent a very strong year of growth against the current economic uncertainties caused by Brexit and show the benefit of our adopting a business plan and indeed our accurate projection that Brexit would cause a slowdown in economic growth across the country.”
The group’s subsequent half year results for the six months to 31st December 2019 show a profit of £3.22m, up from £2.49m the previous year.
Pegasus Group finance director Samantha Kerby said in the annual report: “We are of the view that until Brexit is fully determined we shall continue to see low levels of economic growth in the country and our strategy reflects this view. Thus, we remain cautious about the future, but still seek to plan to grow the company.
“We are seeking as part of our Business Plan and as a response to the current trading conditions to keep a strong control on costs, ensure that we manage cash flow effectively and also to seek to grow revenue in a number of different areas which synthesise with the existing business. This was of course also the position we set out last year and we have seen significant movement in our diversification strategy with new business areas in transportation and property as well as new office growth. We seek this year to build on this still further both geographically and organically.
“Our aim remains to provide an unrivalled service to both our existing and new clients, support and reward all our excellent workforce and move towards our overall 10-year goal.”
As part of the business plan, Pegasus Group maintains clear priorities for the future, which include doubling the business over the next 10 years.
Bateman added: “Operating our Brexit Business Plan has resulted in the company continuing its diversification policy, so we are not as reliant as previously on house building or retail work. Buoyant areas for us currently include renewable energy work on wind farms, solar energy schemes, energy through waste as well as work relating to telecoms with the 5G roll out.”
On his departure, Bateman said: “I have been involved in the overall management of the company from its inception some 16 years ago, it has been a great privilege to see the company grow in the way it has over that time.
“As part of my work a succession strategy was put into place which allows both new equity directors into the company and allows others to retire. It is now time for me to use that strategy and retire myself. I will be leaving Pegasus, therefore, in July 2021. I can assure you though that the company will continue its move forward with the same ethos and with mainly the same management team.”
Pegasus Group chairman Jim Tarzey said: “Tony’s presence in the business will be greatly missed as he has guided us with vision, clarity and a determination to succeed.”
