Lancsville: £150m turnover anticipated this year

Lancsville’s turnover will grow yet again, this time to £150m in the current year, says finance director Gordon Wright.

Last year, Lancsville’s rapid growth-rate took the London-based construction group’s turnover up from £70m to £130m in the space of just 12 months.

Looking further out, Wright continues: “We have 50% of our 2010 turnover figure secured already and that percentage could move to 70% - 75% in the next few weeks.

“The anticipation is that the 2010 overall turnover will be slightly down on the current year’s figure as we consolidate following the expansion achieved in recent years.”

Lancsville made a pre-tax profit of £2.5m in the most recent financial year and Wright said he was hopeful of that figure rising when the next set of results are published.

Wright said that any anxieties over Lancsville’s jump in the level of trade creditors, from £8m to £22m, are misplaced as they can be explained by two changes:

• the surge in turnover – it almost doubled last year;
• an £8m spend on equipment - reversing the previous policy of hiring.

Asked about the situation whereby no credit insurer will offer cover to subcontractors working for Lancsville, Wright said: “We are in continual discussions with credit insurers and would like to get cover back.

“But their decision to withdraw is in line with what similar companies are finding and from discussions we have had with our suppliers, Lancsville is not out of line.”

Since the financial year-end, venture capital company Agilo has boosted Lancsville’s finances with an £11m investment, in the form of  ready cash.

Jason Granite, a founder of Agilo, is now on board as a director of Lancsville. Wright said that his arrival was the result of “two-way communications”.

Asked what would attract Granite to put £11m into a construction company, Wright did not wish to comment.