Tuesday, November 24, 2009

Staff cuts keep GB in profit

GB Group has seen a jump in pre-tax profits this year following a cost-cutting drive at the contractor which saw staff levels fall by more than a quarter.

Latest results show that GB made a pre-tax profit of ВЈ174,000 for the year to June 30 2009 compared to ВЈ133,000 previously despite turnover dropping to ВЈ195.2m from ВЈ207.2m

Directors at the firm acted last year to cut overheads during a restructure into the north and south divisions which also saw staff numbers reduced from 446 to 316 saving ВЈ4m a year.

GB specialises in education, leisure, health and care home contracts and saw the level of repeat business jump to 69% from 60% last time.

Chairman and chief executive Martin Smout said: "We have come through this year in a strong position to tackle the challenges that lie ahead.  We are in a relatively strong financial situation and have restructured the business so that we are in the best position to take advantage of opportunities going forward, while still delivering the value-added solutions to our customers for which we have become well known.

"Our focus for the coming year will be to continue to create more  long term relationships.  We will continue to build on sectors in which we have so much experience, while also expanding into more PFI and development led work."

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