Versatility helps Pugh to gain ground in recession

Jun 22 2009 by Chris Knox, The Journal

A DEMOLITION and construction company has managed to grow its turnover from £16m to £21m after acquiring one of its rivals and now expects to exceed its target of £30m sales over the next five years.

Recent trading figures for Owen Pugh, based near Cramlington, Northumberland, show that the purchase of Newcastle-based Graydon Dawson helped to increase its sales by £4m and added 50 staff to its 250-strong workforce.

It now believes it is well placed to continue this growth, despite the problems facing the construction market, and believes it can grow well beyond a £30m turnover as it continues to expand into areas such as land reclamation, foundation laying and drainage works.

It is working on a number of projects which it said was helping to maintain its growth, including new buildings at Durham Johnston School at Crossgate Moor in the City of Durham and work on a new leisure centre in Blaydon, Gateshead.

It also said that it was seeing signs of a pick-up in the housing market and is working with Newcastle-based housebuilder Bellway on a 700-home development at Shiremoor in North Tyneside, where it has been completing an infrastructure and ground works contract.

The firm believes much of its growth will come from work in Marsden Quarry, near Sunderland, which it acquired in 2000 to supply aggregates to the construction industry and lime for agricultural purposes.

It is currently supplying aggregates to a number of high profile projects including the building of the new Tyne Tunnel and the repair of 30 acres of yard at Smith’s Dock in North Shields.