John Sisk returns UK trading profit after restructure

Aaron Morby 7 years ago

John Sisk & Son’s business in the UK has returned to operating profit after restructuring and downsizing the operation.

John Sisk ceo Steve Bowcott said Sisk is expanding again after completing seven legacy contracts
John Sisk ceo Steve Bowcott said Sisk is expanding again after completing seven legacy contracts

As a result of the business restructure turnover in 2016 fell 43% to £239.3m, while the business returned an operating profit of £3.5m (2015: loss of £8.0m).

But the impact of seven legacy contracts, now all complete, still resulted in an overall financial loss of £10.9m, down from £13.8m, following around £11m of writedowns.

As part of a major shake-up last year, Sisk shut its energy and industrial division and cut its building divisions with around 200 job losses.

Stephen Bowcott, CEO of Sisk said that jobs suffered from hyperinflation in the supply chain, unreasonable contract conditions and delays to contracts because of poor design information.

He said: “I’m happy to say that after a difficult and challenging period for our business in the UK that we now have restructured and refocused our operation to ensure the business is on a sustainable growth oriented footing.

“In 2016 and into 2017 we have continued to work with our core residential partners and look forward to delivering on the strong pipeline of projects with Quintain, Manchester Life, Muse and most recently Argent.”

Sisk presently ranks around 31st by revenue in the UK while judged on size of project undertaken it comes in at 9th.

The firm is now reporting strengthening orders and expects to sign up to £400m worth of contracts with repeat clients in the next few weeks.

Bowcott added: “Sisk is expanding again with revenue set to hit £280m this year and all divisions back in profit.”

The firm aims to stick to four key building markets: high-rise residential, pharma and life sciences, ICT, and commercial.

As part of the new strategy Sisk will only bid two-stage or negotiated work.

Bowcott said: “We have also been working on our first major scheme for Highways England with the A19 scheme in Newcastle.

“This activity complements the successful growth of its civil engineering business in the UK, which is expected to reach around £80m-£90m revenue this year.”

Cash balance remains positive at £12.7m, with no debt. 

Bowcott added: “Our business in the UK is focused on major projects but also maintains a strong regional capability in some key geographies.

“In line with our focus of working with customers who value collaboration we also see more construction management and early contractor involvement opportunities coming into the market in some of these sectors and we feel we are well placed to meet that need.”

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