18/11/08 - Record Performance for Thomas Vale
Worcestershire based construction group Thomas Vale is pleased to announce record half year results, bucking the trend for many in the sector.
The company which originally started in 1869 in Stourport on Severn is today one of the UK’s largest privately owned Construction businesses with an annual turnover of over £200 million, creating employment for over 2500 people on its sites.
Turnover in the six month period ended 30 September 2008 increased by 20% to £109.5 million (last year £91.4 million) and profit before tax increasing by over 18% to £1.62 million (last years £1.36 million). In the last full year to 31 March 2008, the company reported turnover of £195.1 million and profits of £3.07 million. At 30 September 2008 the group had positive bank balances of £18 million and no borrowings (last year £7.6 million).
The business currently directly employs some 850 staff in the region working on projects such as the major reconstruction of Hereford Police Station, Hereford Crematorium, new social housing developments in South Birmingham and Nuneaton for housing associations and offices in Bromsgrove for Basepoint. We continue to work on major framework projects for Birmingham City Council having completed the Gymnasium & Martial Arts Centre, we have now started work on the new Midlands Art Centre as part of that programme of works. Our Housing Regeneration division is performing well in its ‘Decent Homes’ programmes with Birmingham Decent Homes, Sandwell Homes, Wolverhampton Homes and Staffordshire County Council. Furthermore we have recently agreed a new framework contract for the regeneration of homes in Herefordshire.
All of our core businesses in Social Housing, Regeneration, Education, Healthcare, Retirement and Infrastructure are performing well with high levels of opportunities being presented to us as our clients increasingly looking for certainty of delivery in these troubled times.
Having secured a number of new projects in the last six months, the forward four-year order book on various Public and Private sector partnerships remains at around the £500 million level previously reported. Over the next few weeks we expect to make further announcements in respect of significant levels of new work with public sector clients, which will raise the Thomas Vale profile in the construction sector. Of particular note, the £46 million private finance initiative project for Staffordshire Fire and Rescue, the construction of 10 new community fire stations in Staffordshire.
Tony Hyde Managing Director said: The results confirm an outstanding performance in a marketplace with real pressure; everyone associated with the business is to be congratulated. They provide a strong foundation and will give clients and supply chain partners every confidence in Thomas Vale. We have secured numerous awards over recent years for service, quality and innovation; this clearly demonstrates that all of our commitments to change have clearly produced tangible results for our clients and ourselves and that quality of service and competitive delivery go hand in hand.
Chairman Mike Wallis said: The result was in line with expectations and we are confident that our full year forecast will be met as the secured workload is already in place for the year. Our positive cash balances and zero borrowing puts us in an excellent position to grow the business organically or even consider acquisitions as opportunities present themselves.
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