Apollo plots geographical growth to beat spending slowdown

Apollo Property Services Group is to open offices in Wales and the North of England, as it attempts to boost its national profile ahead of a slowdown in public sector spending.

The firm, which operates in the social housing, education and public buildings markets, has traditionally operated in London and the South East, before branching out into the East, South West and Scotland.

Now it has revealed that it is set to sign the lease on a new office in Newport in Wales in a bid to take advantage of Welsh Housing Quality Standard work, and is soon to set up in the North West of England.

Apollo chief operating officer Dave Sheridan told CJ: "Apollo has come through two recessions in the public sector and we know the type of work which we tend to do, which is planned maintenance and capital works, will consolidate. Because we're quite new to the schools sector, we are at a fairly low base so we only need to be as successful as we have been in order to grow.

"But in terms of social housing, one of the reasons why we are opening offices is to do more of the same on a wider basis. We know London will shrink based on available monies. If we stay as we are, we will consolidate and that's why we are working on the geographical growth."

The strategy to grow the business geographically follows a spate of high-profile appointments over the past few months including: former Kier chairman Peter Warry as non executive chairman; ex Bovis chief commercial officer Paul Johnson as group commercial director; and ex Costain UK education director Jeremy Eavis as managing director of education.

The company also looks set to diversify into other work streams such as responsive maintenance and more public buildings work.

Last month Apollo, which is shortlisted for the £4bn Academies framework, reported a 22% rise in turnover to £261.6m for the year to 31 March 2009, driven by its education work. Pre-tax profit fell 6% to £17.4m.