Pochin profit up despite poor results in construction

Pochin has announced a record profit of more than £9m, despite woeful performances in its two construction divisions.

Annual turnover (12 months to 31 May) jumped ahead to £120m (£90m), which produced a 50% rise in pre-tax profit over the previous figure of £6m. The company’s stronghold is its property division, which achieved an operating profit of £10m on sales of £35m.

However, Pochin’s contracting division reported a £67m turnover on an operating profit of just £120,000, while the group’s construction services division delivered only a wafer-thin £4,000 profit from turnover of £14m.

Its poor profit of £130,000 in 2005, followed by the even lower figure this time, has triggered action. The Avoidatrench business has been sold and Cheshire Concrete Products and Pipeline Drillers were bought by management.

Pochin’s various divisions’ operating profits are quoted before the allocation of £900,000 of its headquarter’s costs. The figures cover only Pochin’s continuing operations.

Chairman John Woodcock conceded that contracting profit was disappointing.

[Contract Journal, 4 October 2006, p 4]