Fitzpatrick Contractors' £360m turnover triggers 2.6% margin

Fitzpatrick Contractors has got its profit margins back on track. The latest figure of 2.6%, covering the latest financial year, is well ahead of the lowly 1.1% margin in 2005.

Fitzpatrick also enjoyed a surge in turnover to £360m (12 months to 31 December 2006), representing a rise of £110m over 2005 when turnover ran to £250m.

Part of Volker Wessels, the Dutch based conglomerate, Fitzpatrick’s operations cover civil engineering, building, highways services, rail and fm.

Andries de Jong, chairman, said: “The result is impressive as some of the operations, notably civil engineering, are operating in difficult markets.”

He lists two highlights as winning the Ashford and Ramsgate train depot contracts. They are the largest-ever for Fitzpatrick and both are proceeding well, said de Jong.

The main disappointment was Fitzpatrick’s unsuccessful re-bid for its term maintenance contract with Transport for London “which was lost by a surprising margin”.

However, some of the workload has been replaced as a result of wins with West Berkshire Council and the London Borough of Enfield.

Subcontractors and trade creditors are paid on average in 39 days, a quicker turn-round than in the previous year when the figure stood at 44 days.

Fitzpatrick’s directors felt that the profits permitted a payment of a £5.5m dividend to the group’s shareholders.

At the end of the year, cash stood at £27m. At the end of 2005 the figure stood at £12m.

The highest-paid director received £290,000, something of a crash downwards from the £590,000 sum obtained last year.

Fitzpatrick’s employee numbers rose to 910. In all, the company put £1.7m into their pension pot.