Builder Bermar enjoys its 40th year of profit

Like retail, the construction industry is facing the worst recession since the 1930s as the Federation of Master Builders warned that one third of small building firms had to lay off workers in 2013 because of rising costs and falling numbers of orders.

Yet the Bermar Building Company, based in Allerton, Bradford, is thriving with turnover of £11m thanks to the company’s ethos of honesty, transparency and common sense that is paying dividends in terms of its ongoing success.

Rob Moon, the MD, said: “We have been in business for 40 years and retained profits during this time and we have got a very strong balance sheet. Our clients are local authorities and public sector clients, we have only ever done two private jobs in our history.

“I think the key to our success is we have not been overambitious, we’ve stuck to what we know and not grown too big. We always look after our contractors and are on good terms with our suppliers, so in turn we can offer competitive prices.

“We have grown organically, in the last seven or eight years. There is a good primary team and two of the directors are founding members of the company, my dad Bob and Steve Ludkin’s dad John started it.”

Mr Moon took over as managing director seven years ago. Bermar employs 45 people and he knows all of them. Generally, they tend to work only in West Yorkshire with a close-knit group of eight to 10 clients, such as Kirklees Council, Calderdale, Bradford and Leeds councils. The conversion of Grade II listed Wakefield Museum into a performing arts school for Wakefield College is nearing completion. The £825,000 project has been monitored by English Heritage.

They have recently completed a £2m new breast screening unit at St James’ Hospital, Leeds, without disrupting hospital services and are creating a renal unit at the hospital from former offices. A new health centre was built at Girlington with minimal disruption. Mud was cleared off the road by contractors and noise levels were kept down.

“Staying within our means has been important as has been keeping flexible. Three or four years ago, we had the opportunity to grow to £30m or £40m turnover, but we didn’t do it as you are creating a very big animal to feed.

“Some of our competitors who did grow too big are no longer with us. It’s not all about turnover, its about jobs and being profitable,” he said.

Mr Moon acknowledges it’s a tough market out there and “we are fighting for every job”. They are also in long-term frameworks with Yorbuild, Kirklees Council, Bradford University and Capital which provides half the business’s turnover.

“Obviously, the cuts have made a difference. While new schools are not being built, you will find that schools are extending their existing buildings, so there is work out there. We’ve found that while there are less of the £5m to £20m jobs in the recession, there are more of the £500,000 to £2m jobs.”

They have won a national considerate constructor award for their work at Girlington.

Bermar is one of eight construction companies in Yorkshire listed by the Chartered Institute of Builders and has received a RIBA award.