Panceltica ready to rocket to 'position as world leader'

Panceltica might be the new kid on the block – as the only new construction firm to list on the Stock Exchange in the first six months of 2008 – but Paul Fraser, chief executive, sees the group achieving a position as world leader in the not too distant future.

After raising £63m from backers prior to floating on AIM, the added funds that resulted from the flotation mean that Panceltica is now ready to “develop its position as world leader in the provision of fast-track light-gauge steel fabrication”.

This morning Panceltica unveiled its first interim financial results since floating in March. They cover the six months to 30 June 2008.

Panceltica’s pre-tax loss of £11m was made on turnover of £86m.

In the first half of 2007 Panceltica’s lower turnover of £17m generated a pre-tax profit of £2.9m. That performance gave the group a mouth-watering profit margin of 17%.

In the latest period the operating profit of £7.7m was swamped by a string of one-off charges including a “non-recurring financing cost” of more than £20m.

Panceltica describes itself as a Qatar-based provider of fast-track steel technology to the international construction industry.

“Our core markets remain very active in terms of construction projects,” said Fraser. “Our pipeline for new business is very encouraging, with further discussions under way for contracts in both India and Africa.”

Panceltica is able to offer fast-track fabrication of residential property units on site as a result of acquiring Scottsdale Construction Systems in November 2007.

Net cash outflow from operating activities for the latest six-month period was £30m.

Panceltica states that it has over 1,500 employees with around 1,400 of this number employed in a variety of manufacturing functions from unskilled labourers to supervisors, engineers and project managers. It adds that there are a further 4,000 sub-contract staff working on current projects.

Panceltica’s main attraction is the Middle East.

“Estimates suggest £486bn-worth of construction projects at some stage of planning in Saudi Arabia, Kuwait, UAE, Oman, Qatar and Bahrain, compares with £104bn of construction contracts awarded in 2007,” says Fraser.