GB Building Solutions remains confident of new growth

Dec 11 2009 by Chris Knox, The Journal

THE North East arm of a national building firm has said it is still confident of growth despite expecting its sales to drop from £52m to £40m next year.

Surrey-based GB Building Solutions, which has its North East office in Newcastle, has been adversely affected by the recession and saw its national turnover drop from 5.8%to £195.2m in the year to June 30 2009.

As a result the firm saw its staff cut from 446 to 316 as business consolidated into two operational units, North and South, with the North East workforce dropping from 76 to 64 through natural wastage.

However, regional director Andy Hall believes the North East remains at the forefront of the company’s growth plans and has been involved in major education projects.

These have included the completion of the new £25m Durham Johnston Comprehensive School, with workers still on site to complete the demolition of the previous building as part of phase two and three.

It has also put the finishing touches to the new Staybridge Suites hotel in Newcastle, worth £13m to the company, a secondary school in Cramlington (£12m), and four schools in Blyth and Cramlington with a combined project value of £20m.

This helped the North East office buck the overall trend and grow its turnover from £48m to £52m.

The firm has undergone a restructure help it tackle the remainder of the recession, including working with its suppliers to improve the quality of its raw materials, resulting in annual savings of £4m and an increase in national profits from £1.16m to £2.14m.

Mr Hall expects sales to drop down to £40m next year as the Government tightens its public sector spend.

Mr Hall said: “The construction industry has suffered another very trying year. However, the North East has only seen its workforce trimmed slightly through natural wastage and we are not expecting any major cuts going forward, considering the amount of work we are bidding for in the region.

“Workers in the North East can take heart in the fact that such a sizeable amount of income is generated from work in the region.

“This has been helped by a series of framework agreements which has helped us receive repeat business with some major clients.”

The North East offices are now in line to land a £10.5m contract with BioRegional Quintain to build a residential housing development at its Middlehaven development in Middlesbrough.

ONLINE: To read more North East business stories, go to nebusiness.co.uk.