Contract wins boost Spencer Group

The Hull-based Spencer Group recorded turnover for the year ended March 31, 2013 of £94.7m, which is a 20.6 per cent increase on the previous year.

Profit after tax was £924,000, up £892,000 on the previous year.

Over the year, investment was made in staff recruitment and training, development projects and the infrastructure of the business.

The chief Executive and founder Charlie Spencer said: “These results are encouraging, particularly in view of the fragility of the UK economy and the impact of this upon the broader construction sector.

“The business is in good shape and we are focusing on areas such as the rail and energy sectors where capital spending projects are expected to be strong, therefore offering significant, long-term growth potential. We believe this strategy will prove robust, despite some inconsistency in Government policy with regards to the energy sector which has resulted in stalled or aborted investment decisions by some power generators.

“Our track record of delivering successfully complex and challenging projects is bearing fruit, despite a very competitive marketplace.

“We won a number of important contracts in the year to the end of March and have seen several key project awards since then. At the end of September 2013 we had secured work totalling £158m, compared to £144m in the corresponding period last year. Our 45 per cent ‘strike rate’ of achieving success in tendering for contracts is also highly encouraging.

“Key contract wins in recent months have included a biomass rail-loading facility for Associated British Ports at the Port of Hull, to deliver sustainable fuel to Drax Power Station, which is about to enter the commissioning phase; a contract to carry out the largest retro-fitted bridge dehumidification project ever undertaken globally, on the East Bridge in Denmark; and our first ever project for Transport For London – extensive remodelling works at New Cross Gate.

“Furthermore, earlier this year our Energy Works green energy power station project in Hull gained £20m in funding from the European Regional Development Fund and good progress is being made in bringing that development to fruition.”