20
CENTRAL SOUTH MID MARKET COMMERCIAL
ADAPTABLE Profit growth: Back to basics
As part of its Central South Mid Market focus, BDO has again identified the Top 20 mid-market companies in the region demonstrating sustained and impressive profit growth. How have they achieved such success within their competitive sectors, in today‘s austere times?
‘Turnover is vanity; profit is sanity‘ states the old business maxim. It appears to be true for many of the region‘s mid-market companies, who have managed to demonstrate sustained profitable growth throughout the economic and political uncertainties of the period. However, there are a number of factors affecting sustained profit growth that need to be considered in today‘s complex and competitive business world.
Interestingly, our case studies below don‘t come from the ‘dynamic‘ sectors that might
traditionally be expected to bring significant profit growth, but from civil engineering and logistics. Both sectors were hit hard by the recessionary years, and neither is widely considered to have led the charge of recovery.
“In my experience, strong management teams find strategies for recovering quickly from, or sidestepping the blows of misfortune. Planning for all eventualities, speed of reaction, efficiencies, diversification and bold business model restructuring, can all help to change and
CASE STUDY: Dyer & Butler Holdings
Turnover: £120 million Staff: 650, 80 at Nursling head office
Founded in 1979 by Bob Dyer & David Butler, the Group has built a proud reputation for successfully providing multi-disciplined construction services to UK infrastructure developers within the rail, air, highways, utilities and other safety critical sectors. Last year the company achieved national acclaim from the PM for helping to rapidly reconstruct the storm-wrecked main railway line at Dawlish.
‘Quality work, delivered on time, on budget‘ could be Dyer & Butler‘s (D&B‘s) corporate strapline. Certainly managing director Neil Edwards and his experienced management team see such standards as key to client satisfaction and importantly, the company‘s continuing high regard within a competitive industry.
When times got tough that good reputation and caring attitude proved invaluable – with clients, supply chain relationships and the company‘s own staff.
“We are very approachable at every level of the company. We support those we work with as best we can, and they remember that help.“
Even so, controlling costs remains crucial to the Group, not least because of competitive tendering for contracts. “For us, it is about pursuing opportunities where there is restricted entry because of the proven skills and specialist experience required.
“The business media is full of construction companies that have taken their eye off the bottom line and purely chased the top line. For us, our quality of delivery and reputation are key.“
The Group has pursued a strategy of retaining profits within the business for reinvestment in such areas as high-quality training, specialist plant and vehicles. Current premises are being upgraded and additional capacity acquired nearby to accommodate current and planned growth. In addition, investment in technology has made D&B operations slicker, smarter and more efficient.
www.businessmag.co.uk
BDO partner Jane Mulholland presents Dyer & Butler‘s Top 20 Company Performance award to Neil Edwards
In past years D&B targeted and gained a large number of framework agreements. “We took a strategic decision to concentrate on sectors where we knew there was committed spend and work opportunities for us.“ This secured the company preferred status as a first tier supplier and a long-term workbook for its proven abilities – which helped protect the group from the worst impact of the recession. “We jumped through a lot of hoops to get to that advantageous position.“
Edwards admits D&B could achieve a higher turnover but for the company‘s commitment to its quality principles and the current lack of skilled resource within the sector. “People resources are focusing my attention and we are now deliberately limiting the opportunities we pursue to ensure that we maintain our reputation for quality and reliability.“
Continued ... THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – OCTOBER 2015
control a company‘s destiny,“ commented BDO partner Jane Mulholland.
BDO partner Steve Le Bas added: “In several cases, we discovered successful companies have simply gone back to the basics of business – customer satisfaction, quality products and services, value for money – although talent, experience and technological advances have also played their part.“
While the UK economy is currently performing well, global markets remain turbulent and future interest rate rises are expected. In addition to getting the basics right, businesses that pay attention to detail and are able to read and respond rapidly to market trends in their sector have the best chance of sustaining profits in the longer term.
CHALLENGES BULLISH
ENGINE
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52