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Buckingham Group targets £500m turnover after 2015 results reveal record pre-tax profit

Buckingham Group is targeting revenue of £500m and improved profitability after posting record turnover and profit in its latest results.

The contractor posted turnover of £394.9m for the year to 31 December 2015, up from £308.7m a year earlier, while pre-tax profit hit a record £7.3m, up from £5.4m in its previous results.

Its order book of £270m was £50m higher than a year earlier, while the company also increased its cash reserves to £38.9m, up from £35.9m.

The firm’s portfolio of future contracts includes £200m of stadium work for the likes of Brentford FC, Swansea City and Bristol Rovers.

It also won a deal to build Scunthorpe United’s new £18m 12,000-capacity stadium (pictured).

However, its pre-tax profit margin was still relatively flat at 1.9 per cent, compared with 1.8 per cent last year.

The company said it would be targeting profit margins of 2.5-3 per cent on turnover of £450m to £500m in the medium term, while aiming to maintain its current position of zero loan debt to help support growth.

Buckingham added that the review of Network Rail’s finances – via the Shaw Report and the Office of Rail and Road – alongside the “pausing and un-pausing of certain projects”, had led to a reduced turnover forecast for its rail business for 2016.

The industrial sector made “a significant contribution” to turnover and business growth last year, with projects completed for clients including Ocado and ProLogis.

The group will target further work in this sector in the medium term.

Its civils division also posted strong growth in the year, with major contracts such as a distribution facility for Jaguar Land Rover among those secured.

The company said it will target growth in the public civils and energy markets in the medium and long term, alongside a rising private development workload.

In demolition, Buckingham has secured places on a number of major frameworks, including Rolls-Royce’s demolition framework.

The firm added 64 staff during the year, with average staff numbers reaching 395, up from 331 a year earlier.

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