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Revenue and profit dip at Forterra
Revenue and profit have dipped at Forterra, the manufacturer of clay and concrete building products.
According to full year results for 2023, revenue slid from £455.5m in 2022 to £346.4m.
Meanwhile, profit before tax declined from £70.6m to £31.1m.Neil Ash, Chief Executive Officer, said: “Forterra produced a resilient performance in 2023, in what turned out to be a very challenging year for our industry. Demand for new housing in the UK fell substantially, driven by increasing interest rates adversely impacting affordability and therefore demand for new homes.
“In light of this lower demand management took decisive action on our cost base. Assuming 2024 demand remains consistent with 2023, our management actions will ensure output is broadly matched with sales, thus limiting future inventory build.
“Importantly, however, these temporary reductions will not impact our ability to respond quickly when our markets recover. Indeed, one bright spot during 2023 was the commissioning of the new Desford brick factory, which gradually ramped up production throughout the year, and which will provide a significant capacity uplift in improved markets.
“With the long-term under-supply of housing in the UK continuing to worsen, and with our previous capacity constraints now addressed, the Board remains confident in the Group’s ability to benefit as our key markets recover.”
During the year production was reduced through the mothballing of factories, shift reductions and production breaks. In addition, Forterra restructured commercial and back-office functions.
These actions are set to deliver annualised fixed costs savings in excess of £20m, with around £6m realised in 2023 and the balance being realised in 2024.
Revenue and profit soar at Journeo
Journeo plc, the Ashby-de-la-Zouch-based information systems and transport technical services group, has seen revenue and profit soar.
According to final results for the year ended 31 December 2023, revenue increased 118% to £46.1m, up from £21.1m in 2022.
Profit before tax, meanwhile, increased 312% to £3.7m, up from £0.9m in 2022.
Russ Singleton, CEO of Journeo plc, said: “I am very pleased with the progress we have made towards reaching our goal of becoming a market leader in our field. Our strengthening intellectual property and increased barriers to entry into our markets are helping us establish defendable market positions.
“Each year, we are growing our recurring revenue base as well as our sales order book, providing us with greater forward earnings visibility. Together with healthy cash balances, we are able to invest further in our technologies and business.
“The acquisitions of Infotec and MultiQ have performed well since joining the Group, extending our capabilities and geographic reach. We continue to seek out complementary acquisitions that can provide Journeo with access to adjacent markets or increase the services we deliver into our current markets.
“As we entered 2024, we did so with momentum in our strategy, which is enabling us to deliver valuable products, software, and services for our customers. Our strong order book, growing sales pipeline, and increasing leadership positions give us confidence in our ability to further grow the business.”
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Construction consultancy founder appointed as NTU Alumni and Industry Fellow
The founder partner at multi-disciplinary consultancy company Focus Consultants has been appointed as a Nottingham Trent University Alumni and Industry Fellow.
Kevin Osbon is using the opportunity to share details of how he has built a close relationship with his former university and hopes to encourage others to follow in his footsteps.
He believes that more professionals in their 50s could be sharing their expertise and knowledge with the younger generation.
And, rather than retiring early, he is urging them to consider opportunities for working with their local universities instead.
Kevin studied as a slightly mature student at Nottingham Trent University (NTU) in the late 1980s during the period that it transitioned from Trent Polytechnic to NTU, gaining a BSc Hons in Construction Management in 1990.
Four years later he set up Focus Consultants in his dining room in Beeston, Nottingham.
Since then, the multi-disciplinary company has grown to have offices in Nottingham, Leicester and London with a £6 million annual fee turnover managing over £300 million of construction projects each year – becoming a leading consultancy in the construction, sustainability, cultural and regeneration sectors.
For the past eight years Kevin has been revisiting the corridors of Nottingham Trent University, this time as a lecturer, having gradually stepped away from frontline consultancy following a structured Management Buy In (MBI) of Focus Consultants. He remains majority shareholder and operates as joint chairperson, now largely overseeing the business.
Although still retaining an interest and a role at Focus, his reduced hours, year on year, gave him the opportunity to teach construction management, quantity surveying and construction commercial management, contract administration and control and finance to NTU undergraduates.
He hopes that by highlighting his professional journey, he can encourage others who have a wealth of experience in their respective careers to find a way to share that knowledge with the younger generation.
“When you come to the point of stepping away from frontline consultancy or construction work then all of that intellectual capital should not be lost,” explains Kevin, 59. “The over 50s have vast resources. I have basically had another career in the eight years that I have been working with NTU – gradually increasing my involvement from teaching to writing papers, contributing to books and various other initiatives. It’s been extremely stimulating.
“I never thought I would become a published author or be part of a team that won an internationally significant award for an academic paper, but that’s what has happened as a result of taking on a teaching role at NTU.
“Some over 50s took early retirement after the pandemic and the government is now encouraging them to return to the workplace. This age group has a lot of wisdom and experience to share with the younger generation. They have a lot to give. In my view, the over 50s are a vastly untapped resource.
“There are stacks of people out there like me, who have had a successful first career but who could go on to have a second successful career in teaching, mentoring or training.”
Not only has Kevin’s latest position benefited him personally, it has also brought a number of benefits both to Focus Consultants and to NTU. The University has been able to tap into the knowledge and resources of the Focus team, while Focus has been able to recruit skilled graduates to join the business. The partnership between the two organisations has recently been formalised in a three-year framework looking to provide deliverables such as:
- Knowledge exchange and building links with industry
- Provision of lecturers and guest lecturers
- Fostering talent and providing workplace opportunities for students and graduates
- Providing support and expertise for the new Centre for Sustainable Construction and Retrofit
- Collaboration on project work to facilitate hands-on student work experience
- Contributions to research initiatives leading to published works
Kevin added: “Little did I know that when I studied at Nottingham Trent University in the late 1980s that I would return to the University as a lecturer towards the end of my career and become involved in research and various initiatives leading to a strategic partnership between my consultancy and NTU.
“I’ve enjoyed a very fulfilling career in consultancy and I’m very proud of the business that myself, my partners and my colleagues have built up over the past 30 years. It feels good to be giving something back to help future generations and it’s also been extremely positive for me personally to have had a second career teaching in my 50s.
“I would encourage the over 50s to consider ways that they can share their knowledge and skills. It’s certainly something that I am very pleased to have done and would recommend it to others, if it’s relevant and appropriate for them.”