Denne Construction reports 8.3% margin as PFI deals come good
12:26 30 Oct 2008
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Denne Construction has seen a jump in its pre-tax profit to £5.8m which represents a profit margin of 8.3%
Turnover in the 12 months to 31 December 2007 ran to £70m which was well ahead of the previous year’s figure of £34m which left a profit of £1.0m.
Denne was bought by the Leadbitter Group in September 2006.
That development came four months after the office staff were moved to Borden which is near Sittingbourne in
Denne’s directors said: “This level of change could have led us to take our eye off the ball and become distracted. We chose to counter this by sharpening our focus on our people and delivery of our clients’ expectations.
The latest profit figure includes a sum of £480,000 by way of interest on investment assets.
Denne had previously incurred costs of £1.9m while bidding PFI contracts. As these were subsequently won, that spend was written back into the trading accounts. Without that happy outcome, the latest profit would have been significantly reduced to £3.4m.
The two major PFI deals closed during 2007 were:
- Stanhope Regeneration in Ashford
- KCC Better Homes Active Lives
They offer a combined construction, development and maintenance value of more than £100m.
The construction element, representative of Denne’s core construction activity, is located in
Staff retention was acclaimed as being “excellent”, standing at a figure of 95%.
The construction forward orderbook stands at £150m.
During the year there was a £7,500 donation to The Walking Bus Group.
The latest turnover figure of £70m was made up of two elements:
- £58m sales
- £12m changes in levels of long-term work-in-progress
Debtors jumped from a tally of £5.6m to £10.2m as a result of a major change in the amounts recoverable on long-term contracts rising to £8.1m having previously stood at a figure of £3.9m.