Conder Structures: record profit of £2.1m

Conder Structures’ business has been realigned towards more complicated beam-and-column work, says Jason Hensman, who recently took over as managing director.

“It means that we are working more in schools, colleges and hospitals. These are all bucking the trend as every other construction sector is in decline,” he says.

“We predicted that the demand for portal frame work would fall off – and it has done just that.

“Also, beam-and-column work provides more opportunity to add value to the steel in the form of flooring, stairs and handrails.”

Conder’s latest financial results cover the 12 months to 31 December 2007. They show a record pre-tax profit of £2.1m (figure in the previous year: £1.8m)

Turnover was also a record at £39m, representing a rise of £4m.

Hensman says that Conder’s 2008 turnover won’t be any higher than the latest figure as the group’s policy this year is to consolidate. “A figure of £39m again would be a good outcome,” he said, “as the push is to get more efficiency out of our systems.”

While Hensman would like to close the gap on the higher margin being achieved by market leader Severfield-Rowen, he thinks that the current market won’t allow for such progress. The balance between demand and capacity needs to tip, he explains.

Currently, the effect of the credit crunch is that some planned construction projects are being put on hold. On others, the start date has slipped.

Hensman was headhunted to replace Gordon Ridley as Conder’s managing director from a rival steelwork contractor.

So how is he finding the top job?

“I’ve aged ten years in the past six months,” he quips before adding: “Seriously, we’ve enjoyed a smooth handover.”

Conder’s finance director Roy Mochor is a keen advocate of a “cash is king” policy.

This approach is crucial more than ever in today’s turbulent financial climate, reckons Hensman.