INDUSTRY NEWS
PMI data reports sixth month of falling construction work
UK CONSTRUCTION PMI data published 4 November shows overall volumes of work in construction falling for the sixth consecutive month.
Commenting on the sustained downturn, Brian Berry, chief executive of the Federation of Master Builders (FMB), said: “A Brexit delay, while giving some respite by avoiding a no-deal Brexit, has just led to further uncertainty and stagnation, which is leading to subdued client demand. We know that many homeowners are holding off undertaking home improvement works due to Brexit uncertainty and this is having a knock-on effect on builders’ workloads. It is unclear how long clients will hold off waiting for certainty.”
Gareth Belsham, director of the national property consultancy and surveyors Naismiths, said: “What silver linings there are, are modest. The number of new orders coming in is sliding fast, but at least the latest drop was less than that seen in August and September.
“Investor appetite remains deeply fragile and many contractors are being pummelled on three fronts. Just as their order books get thinner and erode their confidence, they are being forced to bid low for the shallow pool of new work available – while at the same time input costs go up and slice into their margins. No wonder many construction firms are trying to cut costs where they can, and staffing levels have fallen every month since April.
“Nevertheless there are some glimmers of hope. While Britain’s Brexit agony has been put on pause by what promises to be an equally divisive election hiatus, the chances of a chaotic ‘no-deal’ exit have at least diminished.
“While few would bet on a magical return to business as usual after the December election, even a modicum of stability could lead to the thawing of long-delayed projects.”
GAP Group hits record profits as turnover exceeds £200m
GAP GROUP, the UK-based plant, tool and equipment rental company, has announced record annual profits and turnover in the year the Group celebrates a half-century in business.
GAP achieved a pre-tax profit of £18.7m in the year to 31 March 2019, an increase from £16.7m in the preceding 12 months, as annual turnover rose by 8.8% to £203m. Earnings before interest, tax, depreciation and amortisation soared to an all-time high, rising from £73.1m to £80.4m. For the first time in the company’s history, net assets have climbed above £100m as shareholder funds grew to £109m in the latest accounts.
Founded by Gordon Anderson in 1969, the family-owned and operated business has been run by his sons Douglas and Iain Anderson since 1988. With nine divisions, 142 depots nationwide and a total workforce of 1,858, GAP is the UK’s largest independent hire company.
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The family business also announced a new operational structure with an eye on succession- planning and to continue to meet their commercial and development aspirations. Four new managing director positions sit below the GAP Holdings Board which remains unchanged. Douglas Anderson’s son, Mark, has been appointed managing director of the business in Scotland and the North of England, and will be responsible for the profitability of the Plant, Tools, Non- Mechanical Plant, Trenching & Shoring and Welfare divisions.
GAP’s excellent financial performance has been achieved amid political ‘headwind’ in
Britain. In his statement on the accounts, Chairman Danny O’Neil added that GAP fully expects the trading environment to remain “challenging and competitive” but highlights the company’s financial strength and increasingly diverse product range.
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