Robertson Group enjoys 93% climb in pre-tax profit to £14m

Robertson Group has almost doubled its pre-tax profit to £14m with Bill Robertson, executive chairman, reporting a “step change in our PFI activity”.

Robertson Capital Projects (RCP) is one of the group’s 11 operating divisions and during 2006 there was a “step change in bidding, management and investment activity”.

Robertson said: “We’re one of the oldest players in the sector. Sure PFI bid costs are high but we’ve stopped blinking at the size of them now, probably because Robertson has a track record behind it showing that we win three out of every four PFI schemes that we bid for.

“PFI suits us. It’s enabled us to develop our RCP division and we’ve also built an FM division on the back of it.”

The group’s latest financial results (12 months to 30 November 2006) show turnover higher at £190m (£160m). In the previous year, pre-tax profit ran to £7m.

Major PFI wins during the period included the £100m Dundee Schools project, won in a 50:50 joint venture with Sir Robert McAlpine. Robertson will be responsible for the construction operation.

Another win was the final phase of the £50m Redcar & Cleveland grouped schools PFI, this time in a 50:50 jv with Carillion.

RCP is preferred bidder in the £200m Newcastle Building Schools for the Future (BSF) project, the deal having been won in the name of the Aura consortium which comprises RCP, Sir Robert McAlpine and Parsons Brinckerhoff. McAlpine is taking on the construction work while Robertson will handle all the subsequent FM.

Robertson group’s total turnover from construction work runs to around £110m, the tally being made up of inputs from five regional elements, four of which were in profit. The exception was the north of England construction business but this has now been re-shaped and “is doing well” said Robertson.

Robertson Homes, subsequently demerged from the group but fully included in the group’s current set of annual figures, had a £90m turnover and hit operating margins of 8%-10%.

“I have no thoughts of selling it,” said Robertson. “It is making good margins.”

Robertson FM, formed in 2000, now has over 250 employees.

Robertson Timberkit has a forward orderbook running to £30m.  “It was formed 25 years ago and back in the 80s all our throughput was for use elsewhere within the group,” said Robertson.

“Today, however, only 10% of throughput is used by us, the rest going to national and regional housebuilders as well as to major construction companies.” A new £200,000 production line was recently installed in the manufacturing factory at Seaham.