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

Thomas Vale to focus on organic growth

FINANCE - Contractor moves away from acquisitions to hit 20 per cent per year growth

STOURPORT-based Thomas Vale Construction will use organic growth to meet a target of pushing workload up more than 20 per cent a year.

Acquisitions have helped Vale grow its network to offices in Birmingham, Leicester, Nottingham, Reading, Stokeon-Trent and Wolverhampton, but managing director Tony Hyde is returning to a strategy of organic growth.

He said: 'The idea will be organic growth through those offices. We don't want to be working more than one or two hours from those offices.'

Vale edged turnover up a quarter to £114 million in the 12 months to March 2005 with pre-tax profits up to £2.2 million from just under £2 million a year ago.

Part of Thomas Vale Group, which is 40 per cent owned by venture capitalists 3i, the business takes a quarter of its work from private clients such as house builder Crest Nicholson and developer London & Cambridge.

Three quar ters of the turnover comes from the state, mainly on schools and social housing projects, including a major deal with Birm ingham City Council.

Vale also does some health work on ProCure21 through Laing O'Rourke's supply team. Mr Hyde said: 'The industry is quite buoyant and with the Olympics it's going to get quite hot.

'In our main areas of education and social housing, we don't see any slowdown but maybe in some areas like highways there could be cause to complain. There might be a bit of inertia in health too.'

Vale has £350 million-worth of work lined up through partnerships and frameworks.