Shepherd Group sees rise in revenues
SHEPHERD Group, one of Yorkshire’s biggest family-owned firms, achieved an 11% growth in revenue to £748m last year but saw a £9m drop in operating profit after the disposal of a loss-making subsidiary.
The York-based group, which can trace its history back to 1890 and employs 3,200 people, said that the rise in revenue in the 12 months to June 30 from £672m in the same period the previous year, was achieved while maintaining zero debt and net cash of £111m at the year end compared to £89m in 2012.
Despite the downward pressure on key market sectors caused by a background of prolonged global economic uncertainty, each group division – Shepherd Group Built Environment, Shepherd Group Engineering and Portakabin Group – achieved higher turnover for the year.
Operating profit from continuing operations was £16m compared to £25m the previous year which Shepherd said was due to the group taking action to exit the loss-making Homeseeker business, with this unit incurring an operating loss of £2.1m in the year and the disposal having a one-off impact of £3.7m on group profits.
Chairman, Alan Fletcher, said: ”Despite the challenges that contributed to lower profit performance in the year, the group board remains confident in the execution of its strategy which focuses on improving the quality and mix of group earnings, with each division taking actions to broaden their markets in sectors with attractive margins.”
“At Portakabin, for example, an important strategic step was taken by acquiring Oecon Mobilraum GmbH in Germany just after the year end. This acquisition is a key part of expanding the presence of Portakabin in Europe in countries with high GDP.
“Strong management, quality products and services and the decisive actions taken to improve efficiencies and control cash continue to give a high level of confidence in the group’s resilience in the current economic and market conditions and in its potential for growth,” he added.
