PROFITS are falling at Benfield as the Coventry-based construction group's contracting operation moves away from lowest-price work.
In the year to March 2006, pre-tax profits at Benfield tumbled £643,494 to £2.2 million as turnover edged up £832,874 to £22 million.
Chairman Clive Benfield said: 'Benfield Construction has operated profitably in a competitive marketplace. We are moving away from lowestprice competitive tendering towards negotiated contracts.
'Our aim is to enhance a client's profitability to produce a win-win result, which encourages further business.'
Benfield also has a house building operation, Fletcher Homes (Shropshire), which had 121 homes in development over 19 sites at the end of the financial year.
Mr Benfied added: 'Government policy requirements for higher-density development has to some extent restricted the choice of what we are able to build. This has resulted in more developments of apartments with a higher funding requirement than would be required for detached houses and a lumpy cash f low as a result.'
A former chairman of the Construction Confederation, Mr Benfield took over as chairman from his father Ken this year and steered his firm to the Coventry Telegraph Business of the Year Award (pictured).