Jobs are saved, but task begins to find work

Jul 7 2008 by Chris Knox, The Journal

LESS than a year after saving an engineering firm from going under, an electrical and plumbing contractor believes it can more than double its turnover to £8m in five years’ time.

Newcastle-based Gilwood Mast hopes to secure a number of contracts in the region’s education sector in order to hit the target as well as double its workforce to around 80 staff.

The figures represent a turnaround for the 27 ex-employees of Gilwood Engineering Services after the North Shields company was bought by Mast Electrical last year after clocking up a series of bad debts.

Negotiations for Mast to buy out Gilwood began in spring 2007 but a deal could not be finalised until June due to the poor state of its finances.

Managing director David Duffy said: “There were a number of problems with Gilwood and the business was very fortunate to find a buyer when it did. We were able to save all 27 jobs and are now looking to grow the combined workforce along with our turnover.”

The new business, part of the Newcastle construction group Dorin, believes it is now on course to post a £4m turnover in its first financial year next month despite the downturn in the construction sector.

Its ongoing contracts include a £900,000 electrical and plumbing refit of Southwick Primary School in Sunderland and a £1.5m NHS contract at the newly built Newcastle Great Park.

The firm is now hoping to land further work in the education sector as a way of protecting itself from the credit crunch. It also believes its strong relationship with some of the region’s larger construction firms, including County Durham-based Esh Group and Stockton firm Mandale, will help secure its future.

It has also completed a £40,000 refurbishment of its 2,500sqft offices in Hadrian House, including improvements to its IT facilities.

Mr Duffy said: “We have a strong order book at the moment and are confident that the company can survive the credit crunch intact. Although you can never be 100% certain, especially at the moment, we believe we have enough large scale contracts to help us remain on track.”