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John Sisk & Son remains profitable in 2009 and develops larger project capability
Annual results for John Sisk & Son Ltd. (Sisk), the UK operating arm of one of the largest construction groups in the UK and Ireland, show that the company remained in profit for the year ending December 2009 as it developed its capability in larger value and civil engineering projects.
Despite a reduction in turnover, Sisk maintained its gross profit at prior year levels in the face of one of the most significant economic recessions in decades. PBT was down from £2.5m to £1.5m as a result of a decision to invest strategically in developing new markets and enhancing the company’s Major Projects and Civils capabilities. Interest income also showed a reduction in the current lower interest rate environment.
Over the year, the company increased its investment in precontract resources and leveraged group capability to target and secure a number of larger value projects and civil engineering work. Sisk has continued its focus on the private sector and has also placed emphasis on the public sector, which it feels currently offers a number of attractive opportunities.
This business development strategy has resulted in project wins of over £200m in the second half of 2009, which will deliver significant turnover growth in 2010 toward an expected level of circa £300m.
Some of the opportunities secured include:
- Finzels Reach, Bristol (£45m)
- Grand Pier, Weston-super-Mare (£24m)
- Pembroke Power Station, Pembroke (£44m)
- A477 St Clears to Red Roses, Pembrokeshire (£48m)
- Athletes Village, London (£78m)
Paul Wilson, Managing Director, Sisk, commented:
“We have performed well and have continued to deliver a profit despite the prevailing economic conditions. Our continued investment through 2009, with the support of our parent the SISK Group, will enable us to deliver larger value and civils projects. This investment is paying dividends already and, as a consequence, we expect to deliver a significant growth in turnover to £300m this year.”
The company continues to maintain strong cash balances and has no borrowings.
The Directors are satisfied with the after tax profit of £1,183,622, given the economic environment and have recommended the payment of a dividend of £1,088,705.