Operations Review

Our core operations are key to our future growth, operating currently at around 75% of capacity.
Whilst seeking sensible savings in central overheads we must avoid making false economies, we have a big investment in our skilled workforce and will need all our resources to meet the expected demand for our services.

 
The regional board is actively involved in the 'harmonisation' of our regional businesses, which includes achieving improvements in management efficiency, tougher financial controls and cost reductions. Our companies are experiencing mixed fortunes.  In the provinces we have suffered unexpected bad debts and unforeseeable increases in material costs (copper prices increased by over 100% between October 2005 and April 2006). In the South East there has been some recent slippage in the timing of two major projects.

 
Whilst still challenging, the industry is showing signs of improvement in all areas. There is growing demand for new commercial office space in Central London and many large schemes will come on stream during 2007. Infrastructure works associated with 2012 will 'kick-off' in 2008 and will put increasing demands on the industry as a whole.

 
Completions during the period under review included; DrKW, Gresham Street; Nomura House, St. Martins Le Grand; Plots 3, 4 & 5 More London; Wrigleys, Plymouth; Nationwide BS, Swindon; Lanhydrock Golf Club and Hotel; Loch Elk Dunoon Waste Water Treatment; David Wilson Homes, Edinburgh; Buxton Spring Bottling Plant; Cromwell College, Chatteris; RV1 Histo Pathology Department, Newcastle; McCarthy & Stone, Grappenhall; Altrincham Library; Norwich City Football Club; seven Waitrose Stores; HMP Lewes; Cardiology Unit, Harrogate Hospital and Christchurch College, Canterbury.

 
Current Major Projects include; Romford and Havering Hospital; Allen & Overy, Bishopsgate; 201 Bishopsgate and Broadgate Tower; White City Retail Development; Unilever House; Shell Centre; O2 Arena; Drake Circus Shopping Centre, Plymouth; Bordeaux Quay, Bristol; Oceaneering, Rosyth; Wilkies Carpet Store, Leeds; Burton College; Peterborough Hospital; Howlands Farm, Durham University; McCarthy & Stone, Llangollen; Barry Town Hall; Grand Arcade, Cambridge; twelve Waitrose Stores; Warrington Bus Interchange; Grand Theatre, Leeds and HMP Lindholme.

 
Recently Won Contracts include; RBS, Aldgate Union; Mizuho Bank; Golden Jubilee Hospital, Glasgow; Campsfield House Detention Centre, Derby; Framwell Gate Hotel, Durham; McMillan Academy, Middlesborough; South Lynn Millennium Village; Leigh Sports Village and Huddersfield Media Centre.
 
Outlook
Overall our business has achieved improvement in a tough market place.  The forward order book currently stands at £175m, of which £85m is scheduled for completion this year. We have seen some setbacks but the strength of our brand and the order pipeline for 2006 and 2007 position us well to deliver our strategy for continuous improvement, customer satisfaction, profitable growth, enhancing value and increasing returns to our shareholders, whilst managing the risk associated with the industry.