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Simons makes £1.9m pre-tax profit in 2004
16:39 13 Jan 2005
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Simons Construction's turnover of £150m last year delivered a
pre-tax profit of £1.9m, almost double the figure of
£1.1m in 2003.
Chief executive Paul Hodgkinson said the margin of 1.3% will climb as old-style contracts work their way through and out of the pipeline.
"A 3% margin is the target, although we won't get there this year," Hodgkinson said. "The new figures split 60:40 between new and old style contracts. It's taking us a couple of years to get re-organised. We're doing more partnering, and the supply chain downstream has much more shape.
"After taking a new approach, you've still got to work your old stuff out. But it's not just about margins, it's also about risk reduction," Hodgkinson added.
"The majority of activity is achieved through our rolling order programme, partnered and negotiated procurement with a limited number of blue chip customers. Cash performance remains strong as the group continues its policy of having no long-term debt in the business."
Chief executive Paul Hodgkinson said the margin of 1.3% will climb as old-style contracts work their way through and out of the pipeline.
"A 3% margin is the target, although we won't get there this year," Hodgkinson said. "The new figures split 60:40 between new and old style contracts. It's taking us a couple of years to get re-organised. We're doing more partnering, and the supply chain downstream has much more shape.
"After taking a new approach, you've still got to work your old stuff out. But it's not just about margins, it's also about risk reduction," Hodgkinson added.
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"The majority of activity is achieved through our rolling order programme, partnered and negotiated procurement with a limited number of blue chip customers. Cash performance remains strong as the group continues its policy of having no long-term debt in the business."
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