Robert Moyle, currently both chairman and chief executive, has said that he will now become executive chairman and a new chief executive will be appointed. He has been chief executive since 1990, having joined the company on graduation in 1973, and now looks ready to consider succession planning.
“I feel that the time is now right to devolve the roles of chairman and chief executive,” he said. “It is my intention to continue in the role of executive chairman and to assist the new appointee in every way I can in maintaining the growth and improving the profitability of the group. The process has already commenced and the decision will be announced in the near future.”
In his report to the company’s annual general meeting, Mr Moyle provided a positive update on current trading. "It is heartening to be able to report that the return to profitability last year has been maintained in the first quarter with the delivery of a group profit of £234,000, compared with a loss of £125,000 for the same period last year,” he said. “Revenue increased by 10.2% to £59.44m.”
He added: “Overall, there has been a general improvement in the construction market with greater opportunities being available and an increased expenditure on national infrastructure. The current Group order book for work to be executed in this financial year is circa £200m. Further orders will emanate from the existing frameworks and therefore the forecasted revenue for the year will be achieved.”
The performance of the Utilities division continues to be a major problem, he said, although losses in the first quarter have been reduced to £496,000 (Q1 2015: £588,000), on revenue increased to £8.94m (Q1 2015 £4.91m). The first quarter result includes a loss of £134,000 incurred on remedial works due to “the financial demise of a member of the divisional supply chain”.
The Utilities division is now being restructured and all contracts are being reviewed.