Management Buyout Success
Following the management buyout of Fitzgerald Contractors from its parent Thomas Vale, now part of the Bouygues Group, in the spring of this year the company has gone from strength to strength. Embracing the flexibility and entrepreneurial flair that comes from the alignment of management and ownership, turnover in the six months since the change in ownership has increased by 13% to £10.8 million and the company has returned to profitability. The balance sheet is strong with positive bank balances and no borrowings. This firm financial base gives Fitzgerald Contractor’s clients complete confidence in its long term viability.
Future prospects as a whole are very positive with new orders driving the pipeline to record levels and expectations are for an even better second half of the year.
Notable new contracts secured include a resurgence in works for local authorities with Fitzgerald Contractors securing significant city centre regeneration contracts with Sandwell, Dudley and Wolverhampton Councils with a combined turnover in excess of £3.0m.
This has been complemented by a successful 6 months in the retail sector where Fitzgerald have been appointed to deliver the highways works for the new Sainsbury store in Wolverhampton and New Asda stores in Leeds, Sheffield and Manchester, giving a combined order value of £4.5m.
Other significant awards include the reconfiguration of the Telford Box Road totalling £4m, a new traveller site for Solihull Borough Council for £1m and the £2.4m regeneration of the cattle market area in Hereford.
Nick Coley, Managing Director and principle shareholder, said ‘the freedom to operate outside the constraints of a larger group has enabled the management to focus on delivering growth and profitability and this is reflected in the financial results of the business in the first six months of the new ownership structure’
‘The response to the buyout from our staff, our supply chain and our clients has been fantastic, it is encouraging to see this support translating into the results in our first 6 months and crucially into an excellent forward order book and pipeline’