ANOTHER GOOD YEAR!
ANOTHER YEAR OF SUSTAINED GROWTH FOR ONE OF WALES’S OLDEST CONSTRUCTION COMPANIES
In the year ended 30th June 2024, Andrew Scott Ltd grew its total revenues by 15% to £84M (2023: £73M), gross profit increased by 91% to £12.1M and pre-tax profit increased to £5.2M (2023: £1.7M) representing a Gross profit margin of 14.5% (2023 8.7%).
The secured order book at the year-end was £155M, resulting in a forecasted revenue for FY24/25 of around £90M, with a healthy carry over into the next financial year FY25/26 of some £65M.
Cash in bank at the end of financial year was £10.4M.
Mark Bowen, Managing Director, said that “Andrew Scott has again strengthened its market position in the period under review by securing, extending, and renewing several long-term contracts and frameworks and work for new clients. These contracts and frameworks provide visibility and stability in the order book for our company. Careful project selection, strong risk management and a combination of pro-active cashflow, including prompt final account settlements and timely release of retentions ensure we are in a position of financial strength, this coupled with robust tender selection has allowed us to boost turnover and profit.”
Success in 2024 included inclusion on all five Welsh frameworks including the NHS Building For Wales 2 framework, SEWSCAP and SWWRCF and in lot sizes up to £100 million, and with a combined spend of over £2billion over the next 4 to 5 years. This provides visibility and stability in the order book for the foreseeable future. Andrew Scott is currently delivering a portfolio of projects across education, health, commercial, logistics, and advanced manufacturing sectors.
Andrew Scott is a family-run construction and civil engineering company established in 1870. It still retains an entrepreneurial spirit which has allowed it to be both agile and resilient throughout the challenges of the past years. This has enabled Andrew Scott to deliver strong operational and financial performance, against a challenging backdrop of rising energy costs and material prices, and macroeconomic uncertainty.
Andrew Scott design, build and conserve some of the Wales’s most iconic buildings and infrastructure and always put the local community at the heart of everything we do. The company is now in the penultimate year of its five-year strategy plan, and we are on target to exceed our revenue and profit goals. We will now commence our strategy and business planning to deliver a new enhanced five-year strategy. This process should ensure a sustained and profitable future for the company and a clear road map for the delivery of our business plan.
Andrew Scott has 234 direct employees in Wales and nearly 5 times this in our local supply chains. Our prioritisation of direct employment has enhanced our reputation in the market while ensuring consistency, safety, reliability and quality of work for our clients.
Andrew Hoppé, Chairman, said “the resilience afforded by our strategic approach, and our aim to ensure that we do not take on any undue risk and continue to carefully consider and evaluate the deliverability of every new project has enabled us to produce an exceptional set of results. Our solid balance sheet has allowed the company to grow turnover and profitability to record levels while maintaining a very healthy cash balance. We are now seeing a further shift in customer mindset from `lowest bid` to `best quality` with additional scrutiny placed on bidder financial robustness. This firm foundation has given us positive momentum and with a record secured order book, several preconstruction appointments and a strong pipeline of new work we are well positioned to achieve sustainable profitable growth and look forward to the future with confidence.”