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‘Exciting plans in the pipeline’ as Owen Pugh reports 17% profit growth

Owen Pugh has reported a healthy set of financials, with the predicting further growth to follow next year.

Releasing its latest annual results, in the twelve months to March 31 2015, the civil engineering firm grew operating profit by 17% to £792k, while turnover rose 5% to £39.3m.

The company, which employs more than 420 staff, hasfive sites at Dudley near Cramlington, Blaydon, Stockton-on-Tees, Bassington Lane in Cramlington and Marsden Quarry near Sunderland.

The firm attribute’s its performance to multiple contract wins during the period, including work on PD Ports’ rail terminal at Teesport and the restoration of iconic Tyneside structure Dunston Staiths.

It add that profit margin would have been higher had it not been for a one-off cost of £346k, a consequence of Southdale Ltd entering administration in May. Without this cost, operating profit would have risen 46% to top £1.1m.

Moreover, staff headcount across the Group increased by 10% to 404 and investment in leading-edge technology to drive efficiency and productivity continued to remain a key business driver.

John Dickson, chairman at the Owen Pugh Group, said: “While it has been a challenging time for the North East construction industry, with a number of main contractors from outside of the region including Southdale Ltd entering administration and impacting on the North East supply chain, Owen Pugh remains in robust financial health.

“We continue to make a significant contribution to the local economy through our work on several exciting regeneration schemes which are oiling the wheels of the economy by creating jobs and wealth.

“Going forward we have some exciting plans in the pipeline and we are predicting further growth in 2015-16.”

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