Chairman's Message
Whether in Asian plate tectonics or in Middle Eastern popular revolutions, the world over can be characterised by cause and effect. The UK economy is no different – the dizzying monetary and fiscal stimulus witnessed over the last several years has finally catalyzed anxiety about excess government debt levels, tax hikes and currency crisis. As a result, we now face reduced national and local spend – cuts across the board from healthcare to education to defence. Therefore, our £100 billion plus construction sector (8% of GDP) will only modestly grow at best as the private sector attempts to stave off the downward draught of the public sector.
Our strategy at Lorne Stewart has been to steadfastly focus on long-term viability. The dignity of our workforce, reputation of our franchise and profitability of our enterprise remain paramount. Competition remains fierce in all of our geographies and sectors. We have regrettably but successfully contracted in size to a lean and healthy core and will gradually add resource and infrastructure organically or through acquisition as the markets allow.
Despite this tumultuous backdrop, I am pleased to report that Lorne Stewart performed reasonably well in Fiscal Year 2010 remaining consistently profitable. Revenues for the year were £173 million, down 6% on the previous year’s figure of £183 million. Pre-tax profits were £6.1 million, down 3% against £6.3 million in Fiscal Year 2009. We ended the year with approximately 1250 employees, 22 branches, £37.4 million in cash and no financial debt.
Over the last several years, we have monotonously focused on the basics in our Contracting business – from bidding to procurement to completion – and it has paid off handsomely for clients and the company. Noteworthy examples include One Hyde Park, Lancaster Gate and Caerphilly Hospital. Meanwhile, our Services business continues to succeed with revenues of £48.5 million and profitability growing. We saw important contract wins and renewals such as Barclays Bank, U.K.AEA and Merseyrail.
Organisationally, we restructured in order to be more efficient in the current environment – Contracting under the direction of a single managing director, Gary Worrall, and Services under another, Peter Black. Our board now comprises three executive and two non-executive directors.
With a strong balance sheet, we remain vigilant for opportunities by acquisition but, as yet, have not identified anything compelling.
Once again, we enter the new year with passion and determination and are proactively pursuing our strategy to be the leading mechanical and electrical engineering player in the UK. On behalf of our company, board and shareholders, we thank our customers and suppliers for placing their confidence in us to perform for them. Moreover, we express our deepest gratitude to our people. We strive to warrant their continued trust.
Our strategy at Lorne Stewart has been to steadfastly focus on long-term viability. The dignity of our workforce, reputation of our franchise and profitability of our enterprise remain paramount. Competition remains fierce in all of our geographies and sectors. We have regrettably but successfully contracted in size to a lean and healthy core and will gradually add resource and infrastructure organically or through acquisition as the markets allow.
Despite this tumultuous backdrop, I am pleased to report that Lorne Stewart performed reasonably well in Fiscal Year 2010 remaining consistently profitable. Revenues for the year were £173 million, down 6% on the previous year’s figure of £183 million. Pre-tax profits were £6.1 million, down 3% against £6.3 million in Fiscal Year 2009. We ended the year with approximately 1250 employees, 22 branches, £37.4 million in cash and no financial debt.
Over the last several years, we have monotonously focused on the basics in our Contracting business – from bidding to procurement to completion – and it has paid off handsomely for clients and the company. Noteworthy examples include One Hyde Park, Lancaster Gate and Caerphilly Hospital. Meanwhile, our Services business continues to succeed with revenues of £48.5 million and profitability growing. We saw important contract wins and renewals such as Barclays Bank, U.K.AEA and Merseyrail.
Organisationally, we restructured in order to be more efficient in the current environment – Contracting under the direction of a single managing director, Gary Worrall, and Services under another, Peter Black. Our board now comprises three executive and two non-executive directors.
With a strong balance sheet, we remain vigilant for opportunities by acquisition but, as yet, have not identified anything compelling.
Once again, we enter the new year with passion and determination and are proactively pursuing our strategy to be the leading mechanical and electrical engineering player in the UK. On behalf of our company, board and shareholders, we thank our customers and suppliers for placing their confidence in us to perform for them. Moreover, we express our deepest gratitude to our people. We strive to warrant their continued trust.
Respectfully,
Tarek AbuZayyad
Chairman
Tarek AbuZayyad
Chairman