Imtech has set its sights on becoming a £500m-turnover firm after it published its first results since a management buyout.
Chief executive Paul Kavanagh told Construction News the technical services firm was expecting to increase staff numbers and work volumes and would consider future acquisitions as it worked towards a half-billion revenue target by 2019.
Imtech was bought by its senior UK team from bankrupt Dutch parent company Royal Imtech NV in the summer of 2015, with the help of private equity firm Endless.
The M&E specialist this morning posted revenue of £180m for the seven months from 1 September 2015 to 31 March 2016. It also recorded £192m revenue for the following seven months, to 31 October 2016.
Mr Kavanagh said: “A lot of the platform to get to £500m will be this year. We will see a lower level of growth in the next two years.
“We have been successful in winning work, now we have to turn our focus to delivery and organic growth.
“We are looking at certain areas – energy services may be one – where we might look at some bolt-on acquisitions if the opportunity is right. We are keeping our minds open as we go towards 2019.”
Mr Kavanagh said the keys to making the buyout work for Imtech, after securing funding from Endless, were retaining large numbers of its workers and subcontractors then quickly winning work following the deal.
Of 2,600 staff in what was then Imtech UK and Ireland, only around 100 were not transferred to the new-look company.
Within weeks of the buyout, Imtech secured work worth more than £20m with Carillion on the redevelopment of Anfield’s Main Stand for Liverpool Football Club.
Before the end of 2015 the firm had also secured a €22m (£19m) windfarm contract at Slievecallan in the Republic of Ireland, a £21m contract at BBC Television Centre and a £10m contract at Birmingham Conservatoire, among other deals.
“The first generation of post-buyout work is coming to completion and we have a higher order book than 12 months ago,” Mr Kavanagh said today.
The company had an order book of £385m at 31 October 216, up from £336m on 31 March that year.
Gross profit, before overheads were accounted for, was £22.3m in the second seven-month reporting period, up from £21.4m in the first.
Imtech reported an operational EBITDA of £2.6m in the seven months to 31 October last year, compared with -£0.4m in the previous period.
The loss in the earlier period was blamed on issues connected to the failure of the parent company, and underperforming contracts won during the downturn. Mr Kavanagh said these had now all been worked through.