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Allenbuild's trading turnaround
16:58 24 Mar 2004
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The turnaround of fortunes at Allenbuild North East is such that
the business will be back into profit this year on a higher
turnover of around £55m, said Colin Veitch this week.
Veitch, who arrived as managing director two years ago when the firm was on its knees, has transformed the business. At first, nothing was safe. "I went in thinking that if I had to replace everyone then I would," he said.
Trading at that time as Allenbuild Turner, the business included a projects subsidiary which undertook schemes of £20 to £25m anywhere in the UK, that was "sinking the ship". "The main flaws were that there was no real structure to the business, poor programming, a lack of proper estimating and whenever it won a job, it then had to go out and find the necessary staff," said Veitch.
The Allen Group's earlier estimate of an £8m loss in its building division was blown out of the water when a subsequent audit showed that the figure had soared to £13m, with £11m of this total lying within Allenbuild Turner.
The plant hire group put Allenbuild up for sale within days of Veitch's arrival, prompting HBG, his former employer, to telephone to say "there's still a job here if you want to return". But Veitch, who had headed up HBG's £90m-a-year construction division in the North East, stuck with his decision and days later found himself working for Roger Feast, Montpelier having stepped in with a successful take-over bid.
The prospect of a wholesale clear-out of staff didn't materialise. "The worst offenders had already gone," said Veitch, adding tactfully, "some others have since left with my blessing."
He estimates that 70% of senior staff have stayed on board. The senior structure has been revamped, particularly in estimating and tendering where Veitch says "80% of the risk comes from".
Veitch has been keen to bring HBG recruits on board includes a handful "whom I really trust". Two of these are John Scahill, pre-contract commercial manager, and Andy Cullen, pre-contract manager.
"HBG was very systems-orientated," said Veitch, "and it was a shock to find such a wishy-washy set of procedures here that didn't gel together."
Veitch, who arrived as managing director two years ago when the firm was on its knees, has transformed the business. At first, nothing was safe. "I went in thinking that if I had to replace everyone then I would," he said.
Trading at that time as Allenbuild Turner, the business included a projects subsidiary which undertook schemes of £20 to £25m anywhere in the UK, that was "sinking the ship". "The main flaws were that there was no real structure to the business, poor programming, a lack of proper estimating and whenever it won a job, it then had to go out and find the necessary staff," said Veitch.
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The Allen Group's earlier estimate of an £8m loss in its building division was blown out of the water when a subsequent audit showed that the figure had soared to £13m, with £11m of this total lying within Allenbuild Turner.
The plant hire group put Allenbuild up for sale within days of Veitch's arrival, prompting HBG, his former employer, to telephone to say "there's still a job here if you want to return". But Veitch, who had headed up HBG's £90m-a-year construction division in the North East, stuck with his decision and days later found himself working for Roger Feast, Montpelier having stepped in with a successful take-over bid.
The prospect of a wholesale clear-out of staff didn't materialise. "The worst offenders had already gone," said Veitch, adding tactfully, "some others have since left with my blessing."
He estimates that 70% of senior staff have stayed on board. The senior structure has been revamped, particularly in estimating and tendering where Veitch says "80% of the risk comes from".
Veitch has been keen to bring HBG recruits on board includes a handful "whom I really trust". Two of these are John Scahill, pre-contract commercial manager, and Andy Cullen, pre-contract manager.
"HBG was very systems-orientated," said Veitch, "and it was a shock to find such a wishy-washy set of procedures here that didn't gel together."
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