Strategic Team Group looks at acquisitions as growth continues
ONE of the UK’s fastest growing building contractors, Strategic Team Group, has posted another set of record results despite the troubles affecting the construction sector.
The Castleford-based business saw a 20% increase in sales to £34.5m with earnings before interest, tax, depreciation and amortisation up 6.7% to £2.5m in the year to March 31.
The company is now looking at making acquisitions with targets already identified in the North West and Scotland.
The year saw Strategic Team Group re-structure the business and strengthen the board of directors with the appointment of non-executive chairman, Stuart Black,
Andrew Coates was promoted to construction director and Craig McKillop to operations director in Scotland to meet an aggressive expansion plan for the next two years.
The growth, which was all achieved organically, was made across all market sectors, with 45% of turnover generated in the group’s core area, social and affordable housing and the remainder in transport, government (education and public buildings), commercial office fit-outs and high profile residential schemes.
STG succeeded in raising its profile in the rail sector, completing the first National Stations Improvement Programme (NSIP) scheme, a Department for
Transport backed programme to deliver improvements to 150 medium sized stations in England and Wales.
The project saw the group complete a £1.5m upgrade of the grade two listed, Ormskirk station and continue with its successful working relationship with Mersey Rail.
It is also due to start work at stations in Leeds, Huddersfield, Accrington and Cleethorpes.
It also secured several significant long-term framework deals with local authorities and registered social landlords including Home Group and Kirklees Council, Leeds City Council & Firebird JVC.
As a direct result of new client and new project wins the group increased its team by 23% to 196 people and increased the maximum project value per site from £2m to more than £3m.
Strategic Team Group hosted its second charity gala and business awards event, raising over £30,000 for the British Heart Foundation. The year also saw the Group donate a further £12,000 to charitable causes and to support young people in sport.
STG’s business development director, Charles Tweed said: “The results are very satisfying, particularly as the later stages of the year saw the property market and the construction industry pummelled by the economic downturn.
“The group’s ability to continue to grow during this period, producing record sales and a good operating profit demonstrates the strength of the underlying business and the continuing resilience of our chosen market sectors.
“Looking forward, our order books are already worth over £19m, so we are confident of making further progress in the year ahead both organically and through acquisition.”
