Bowey pushes turnover to £45m as MBO opportunity bears fruit

Bowey Construction has pushed turnover higher to £45m (£29m) in its latest annual figures (12 months to October 2003), with pre-tax profit holding firm at £520,000 (£510,000).

When the six-man management buy-out (MBO) team made a break for independence in 2002, the turnover of the Newcastle-upon-Tyne-based construction group was running at £18m.

Ian Walker managing director said: "We were part of the old family firm and the owner's main interest was in the housebuilding division. On the construction side, we were being held back.

"When Ron Bowey suggested a management buy-out we accepted the offer and it's the best thing we've ever done. We've had huge support from clients and subcontractors."

Bowey operates within a 150-mile radius of Newcastle and projects have an average value of around £1m. The biggest job has been a £20m city academy project. "That was a quantum leap for us," said Walker. "We're doing several £3m to £4.5m projects now."

Everyone in the group has a CSCS card. "I think we must be the first in the country to achieve that status," said Walker. "It was quite daunting."