Leadbitter: profit margin lifts to 3.5%

Latest financial results from Leadbitter paint a rosy picture: not only did annual turnover jump from £160m to £260m last year, but the profit margin also showed an increase, lifting to 3.5%.

Leadbitter’s financial figures cover the 12 months to 31 December 2007.

Pre-tax profit was £9.2m. In the previous year the profit of £5.4m gave Leadbitter a profit margin of 3.3%.

The plan for 2008 is to take turnover up another notch, to £320m, with the profit margin also lifting, a climb to 4.0% being the aim.

Leadbitter has three operating divisions:

• Affordable housing
• Low-cost open market sale housing
• Construction

The lift in turnover comes mainly from the acquisition of Denne, based in Kent, which happened in September 2006. It contributed £90m to Leadbitter’s latest turnover figure.

Construction accounts for 50% of group turnover, the balance coming from the combination of affordable housing and speculative housing.

Bob Rendell, chief executive, said: “Last year all three of our operating divisions were in profit. The busiest sectors for us at the moment are education, leisure, student accommodation and supported living.”

Staff numbers in 2007 ran to 610 which was a rise of 80. Of this total, 400 were involved in on-site operations.

The bill for wages and salaries ran to £22m.

The highest paid director received £320,000 which was £10,000 higher than in 2006.

Leadbitter is owned by Heijmans, the Dutch construction giant. There was a £3.7m dividend paid out of the latest profit.

Asked about the construction industry’s skills shortage, Rendell said: “The only shortage we see is for estimators. No-one has been training them and it’s not been a skill that people wanted to go into.

“The shortage of all other skills has eased and we are finding that there are higher calibre candidates in the market.”