In the twelve months to March 31 2015, Owen Pugh Group grew operating profit by 17% to £792,000, while turnover rose 5% to £39.3 million.
The profit margin would have been higher had it not been for a one-off cost of £346,000, a consequence of Southdale Ltd entering administration in May. Without this cost, operating profit would have risen 46% to top £1.1 million.
The strong financial performance was attributed to several prestigious contract wins during the period, including work on PD Ports’ rail terminal at Teesport and the restoration of iconic Tyneside structure Dunston Staiths.
Since March Owen Pugh has secured work on a string of other high-profile projects, such as the £30m Morpeth Northern Bypass scheme, the redevelopment of the Port of Sunderland, the extension of Dalton Park near Seaham and the upgrade of the drainage network across County Durham. In addition, its construction arm is set to undertake work on an access road for Swan Hunter as well as on the Portland Green student village in Newcastle.
During the course of the financial year staff headcount across the Group increased by 10% to 404 and investment in leading-edge technology to drive efficiency and productivity continued to remain a key business driver.
John Dickson, chairman at the Owen Pugh Group, said: “While it has been a challenging time for the North East construction industry, with a number of main contractors from outside of the region including Southdale Ltd entering administration and impacting on the North East supply chain, Owen Pugh remains in robust financial health. We continue to make a significant contribution to the local economy through our work on several exciting regeneration schemes which are oiling the wheels of the economy by creating jobs and wealth.
“Going forward we have some exciting plans in the pipeline and we are predicting further growth in 2015-16.”
The scope of work delivered by Owen Pugh Construction varies from road and bridge construction, ports, harbours and sea defences, industrial facilities and office parks to urban renewal and environmental improvements, land reclamation, remediation and environmentally sensitive schemes. The company employs more than 420 staff across five sites at Dudley near Cramlington, Blaydon, Stockton-on-Tees, Bassington Lane in Cramlington and Marsden Quarry near Sunderland.
To find out more about the Owen Pugh Group visit www.owenpugh.com.