43-day payment record

by John Leitch



Fitzpatrick is leading the construction industry in having the courage to publish details of how quickly it pays its subcontractors. In 1999, the group's average creditor figure was 43 days.

Penny Fitzpatrick, director, said this week: "It has alwaysbeen our policy at Fitzpatrick to pay on time and on the terms agreed. It gives us an advantage because if subcontractors know that they will be paid on time they prefer to work for us. Many have been with us for years."

The group's latest financial results, published this week, for the 12 months to 31 December 1999, show pre-tax profit up at £4m (£2.5m) and turnover ahead at £135m (£100m). The latest performance puts Fitzpatrick's margins at slightly more than 3%.

Fitzpatrick said that the two main reasons behind the improved performance are the profitability of joint ventures and "more efficiency" in the company.

Civils accounts for £80-90m of turnover. This business divides between paving (mainly at airports), roads, term maintenance and rail. Employees work in specific teams, each with a designated leader.

Fitzpatrick has developed a building division in recent years: it now accounts for £40-50m of turnover. Fitzpatrick's targeted areas are industrial sheds, hospitals, schools, office refurbishment and urban regeneration.

After a period of rapid expansion, Fitzpatrick's turnover is expected to stay steady at around £135m in 2000 as the group aims for a year of consolidation.