Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Ogilvie prof its rocket but skills gap a threat

FINANCE - Profits for construction arm hit £2.8 million as firm waits for PPP jobs to start

PROFITS have hit a record £2.8 million at Ogilvie Construction but Phil McEwan, managing director of the Stirlingbased contractor, is concerned Scotland's skill base could be overstretched.

Ogilvie Construction hoisted pre-tax profits by 86 per cent to a record £2.8 million in the year to June 2005, despite turnover only edging up £2.5 million to £92.5 million.

Mr McEwan said: 'We've got 41 apprentices out of 440 staff so we're doing our bit ? companies that are bigger than us are not taking on apprentices.

'The situation is manageable but if all the education Public Private Partnerships and the residential work kicks off then there will be a skills shortage.'

Education work has yet to kick in but Ogilvie is in a group that is preferred bidder on one PPP schools deal in Stirling and in teams shortlisted for another two PPPs in Scotland.

The firm has just finished a 372-unit job for house builder Barratt and started on another 200-flat project for Gladedale in Glasgow.

Ogilvie has also built 130 units for the group's housing arm selling at an average price of about £175,000.

Chief executive Duncan Ogilvie said: 'Ogilvie Homes has achieved increased profits through managed release of sites from its landbank as well as expansion in mixed tenure and regeneration.' Leisure work for Whitbread, including jobs in Gosforth and Manchester, drove workload.

Some 65 per cent of Ogilvie's orders were negotiated Mr McEwan said: 'We are talking to Marriott about more work down south.' Ogilvie's contract hire business turned over £53 million ? up from £40 million ? and its IT business edged workload up £500,000 to £1.5 million.

Ogilvie Group's turnover was up £16 million at £147 million and pre-tax profits surged £1.7 million to £4.4 million.