Housebuilder Allen doubles its profits

Allen, the Bolton-based housebuilding, contracting and hire services group, doubled pre-tax profits to œ6 million for the year to 2 April 1995.

Turnover was up 70% to œ106 million, boosted by the acquisition of civils firm G Pearce of Devizes, and the Suffolk-based hire group Kendrick.

The building division made profits of œ630,000 (1994: œ610,000), due entirely to Allen Design+Build. Its 'outstanding year' wiped out a first-ever loss for Allen Building running into hundreds of thousands.

Chairman Donald Greenhalgh complained of reckless bidding by large contractors. He said bids were still going in at 5-10% below cost, and cited the recent collapse of Tyson and Kilroe as evidence.

Hire services accounted for 41% of group operating profits in the last financial year. Allen, the second largest player in the tool hire sector, is pioneering futher acquisitions and expects to produce over 50% of operating profits from hire in the current financial year.