STP aiming to hit £25m turnover in five years

Jul 11 2008 by Chris Knox, The Journal

A BUILDING company expects to more than double its turnover despite the difficult trading conditions affecting the construction industry.

STP Construction has almost doubled its floor space after moving to new 3,700sqft facilities in Rowlands Gill, which it believes will help increase turnover from £10.5m to more than £25m in five years.

The firm, set up five years ago near the new site, has managed to grow quickly by becoming involved in a wide variety of projects. These have recently included a £2.8m contract with North East developer UK Land Estates to build one industrial unit and nine trading units at the Team Valley Trading Estate, Gateshead.

Other jobs have included the £1.2m refurbishment of a children’s activity centre in Hexham and the £1.5m building of a autism care centre in Stanley.

The firm believes its wide variety of developments and its lack of exposure to the ever worsening housebuilding market will allow it to grow its turnover by 25% each year and double its 12-staff and 27 field operatives within five years.

Ian Cowling, managing director at STP, said: “We have yet to be affected badly by the credit crunch that has had such a bad impact on so many companies in the region. That’s because we have been careful not to get too heavily involved in the housing market which has proven temperamental in the past.

“However, that is not to say that we would not want to enter the residential market once it corrects itself as we would then be a big enough outfit to handle the risk better.”

The firm also recently completed the £4m construction of the new Skills Academy for Construction for Gateshead College, also at Team Valley.

The college building sits on the site of an old Rolls Royce factory and provides teaching facilities for students looking for a career in joinery, plumbing, carpentry, electrical installation, brickwork, plastering, gas servicing repair and painting and decorating.

The project is close to Mr Cowling’s heart. He said: “By constructing the college we had an amazing sense that we were putting something back into the sector. Hopefully the site will be able to help safeguard North East construction well into the future.”