A family-run construction and civil engineering company has reported record growth in 2024.
In the year ended 30th June 2024, Andrew Scott Ltd grew its total revenues by 15% to £84 million (2023: £73 million). Gross profit increased by 91% to £12.1 million and pre-tax profit increased to £5.2 million (2023: £1.7 million) representing a Gross profit margin of 14.5% (2023 8.7%).
The secured order book at the year-end was £155 million, resulting in a forecasted revenue for FY24/25 of around £90 million, with a healthy carry over into the next financial year FY25/26 of some £65 million.
Cash in bank at the end of financial year was £10.4 million.
Mark Bowen, Managing Director, said:
“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 £2 billion over the next f0ur to five years. The firm 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 said it “still retains an entrepreneurial spirit which has allowed it to be both agile and resilient throughout the challenges of the past years”. The firm said this approach had enabled it to deliver strong operational and financial performance, against a challenging backdrop of rising energy costs and material prices, and macroeconomic uncertainty.
The firm has 234 direct employees in Wales and nearly five times this in the local supply chains.
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.”