Ogilvie posts ‘healthy’ profits surge
Ogilvie Group has achieved what it called a “healthy” 33 per cent growth in profitability on the back of a 17 per cent increase in turnover in 2013.
For the year ended 30th June 2014 turnover rose to £210 million from £179m in the previous year and pre-tax profit increased to £4m from £3m in the same period.
Ogilvie Fleet continued to perform strongly, capitalising on a sustained buoyant used car and van market with a well-managed vehicle disposal policy. The fleet size increased to 11,500 vehicles and the company is ranked in the top 20 UK vehicle contract hire companies. The business once again won the prestigious Fleeteye Customer Satisfaction award for the fourth consecutive year, which is testament to its consistently high standards of customer care.
Ogilvie Construction is seeing signs of recovery in the sector and predicts significantly improved turnover and profitability in the coming year. The company maintained its position as one of Scotland’s leading building contractors with an increase in turnover, however a drop in profit highlights the continued pressure on construction sector margins during the year. The business has recently secured a number of public sector works, along with major projects in the private sector, particularly in hotel, leisure and student accommodation sectors.
The Scottish Government’s Help to Buy scheme stimulated impetus for Ogilvie Homes, improving mortgage availability, which is expected to reinvigorate the market again when it is re-introduced in 2015. Demand for new homes remains solid and the company continues to procure contracts with housing associations and local authorities to provide affordable housing.
Ogilvie Communications faced a challenging year after losing a strategic supplier, however a restructuring of the sales team, along with diversification into new products and services is expected to bring the company into profit again quickly.
In April the Group boosted its surveying business, Loy Surveys, with the acquisition of Longdin and Browning (Surveys), which have both been rebranded to trade as Ogilvie Geomatics.
The Group has negotiated a new 5-year revolving credit facility with its bankers, Barclays Bank plc, that will provide funding to develop all areas of the business. A securitisation funding facility with HSBC for Ogilvie Fleet will support the company’s strategy to expand the fleet to 20,000 vehicles.
Duncan Ogilvie, chief executive at Ogilvie Group, said: “We have seen a solid 33 per cent increase in profitability through the year with another excellent performance from our fleet business, supported by real signs of market recovery in the construction, housebuilding and surveying sectors, along with new opportunities in communications.
“Across all of our operations we have an absolute focus on delivering quality products, backed by the highest standards of service. We continue to achieve this through sustained investment in our people, ensuring a highly skilled professional workforce that is motivated to always do their best for customers.
“The new funding arrangements reflect the strength of the Group’s track record and will support continued consolidation and growth in the markets where we operate.”