Buckingham Group targets £500m revenue in 2018

Buckingham Group Contracting is targeting turnover of £500m in 2018 after seeing Brexit delayed projects brought back on stream.

The firm is eyeing a steady stream of opportunities ahead from a batch of stadium building projects to big opportunities for delivering HS2 projects.

It is also aiming to expand the business into highways and larger energy from waste schemes.

Buckingham recorded turnover of £408m last year, with a net margin of 3.2% and year-end cash of £63m.

Managing director Mike Kempley said the 3% revenue growth in 2016 was actually lower than the £450m initially targeted because of Brexit uncertainty.

“Most of the delayed projects still proceeded, and the compensating effect has been to escalate secured workloads levels in 2017, with an exaggerated growth rate forecast for this year.” Kemply said.

It is now forecasting £500m turnover in 2018 and sustaining margins at 3%-4%.

Despite delays pre-tax profit at the group nearly doubled from £7m in 2015 to £13m last year.

Buckingham has been working on various aspects of the Spurs stadium project for several years and is negotiating to clad the new Sky Bridge – a luxury restaurant suspended from the roof at the stadium.

Kempley revealed Buckingham was presently tendering for the £50m mixed-use leisure development, including multi screen cinema and new 12,000 seat stadium, for York City Football Club.

Buckingham’s sports stadium pipeline also includes preferred bidder positions for Brentford FC, Scunthorpe United FC and Casement Park in Belfast, Northern Ireland.

These have been delayed with planning and associated land development issue but are hoped to proceed over the coming year.

The firm is also in discussions for upgrade works to Brighton and Hove Albion’s Amex stadium. These are needed to meet the Premier League’s requirements following the club’s promotion.

from Construction Enquirer http://www.constructionenquirer.com/2017/06/22/buckingham-group-targets-500m-revenue-in-2018/

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