Mowlem expands Skillbase

by James Atkinson



Skillbase, Mowlem's 24-hour domestic maintenance business, has experienced substantial rises in trading since its launch in January 1998 with volumes now running at £4 to £5 million per month.

Mowlem is now widening the operational network. Currently Skillbase operates from 12 main branches across the UK and a further six will be opened over the next six to 8 months. Main branches are backed up by a network of smaller units designed to extend local coverage. Brian May, a divisional chairman of Mowlem, is managing director of Skillbase.

Turnover last year was just under £35 million and is projected to reach £45-46 million this year. The central call centre in Sheffield is now logging over 1,000 calls a day. Unlike other contractors getting into the domestic repair market, Skillbase largely uses direct labour with a screening process to recruit customer-orientated staff with communication as well as trade skills.

Speaking at the opening of a new branch at Chatham, Kent, Mowlem chief executive John Gains said that he expected Skillbase "to make two to three times what we get out of construction." Gains said that although there was some way to go before Skillbase achieved the coverage and levels of service aimed at, profits should eventually be between 5-10 per cent. "We are already getting that in the insurance side of the business," said Gains. He added that the use of direct labour was worth the cost as it was the only way to control quality and service.

Skillbase's clients are divided into four main markets. The most substantial market is providing the domestic repair service for insurance companies such as CGU, Norwich Union, Abbey National and Pearl Insurance - trials are underway with others. Skillbase aims to assess the property, validate the claim, make an estimate and once cleared by the client, carry out the repairs within a period of five days.

Retail and utility clients are also providing 'affinity' contracts. Skillbase is piloting a scheme with Sainsbury's Homebase Solutions Service at 18 stores in Birmingham and Bournemouth and recently extended to a further 13 stores in South London and Scotland. Under the scheme, any building works offered by Homebase and procured by a householder is undertaken by Skillbase. It has other affinity contracts to install boiler and central heating systems for British Gas in Scotland and installation of equipment for Armitage Shanks and Chiltern Inverdex.

Skillbase also undertakes repair and maintenance work for a number of housing associations and housing companies. But it is also pursuing direct sales with private householders through a combination of advertising via Yellow Pages, Thomson and direct marketing.

Further initiatives underway include the broadening of Skillbase's subsidence investigation and remediation service and a pilot scheme for a mortgage survey repair service for Abbey National and Woolwich. This will provide a rectification service for mortgage applicants for problems identified in a survey. Skillbase is also working with First Direct who will direct mail to householders on a pilot scheme for repair work.