Scaffolding Firm Reaches New Heights Following Cost Cuts (1 Viewer)

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A Teeside scaffolding firm said it is set to defy the problems facing the construction sector and grow its sales to £10m after cutting its costs by half.

Middlesbrough-based Project Scaffolding is reaping the rewards after teaming up with Yarm-based management accountancy firm Absolute & Accurate Solutions (A&A Solutions) to help cut its overheads down by 50%.

It now believes it can grow its turnover from £9.1m to £9.4m over the next few months, and hopes to achieve sales of £10m over the coming years as the recession comes to an end.

The firm, which was founded in 1998, now plans to create jobs to add to its 170-strong workforce and recently set up new offices in Livingston, West Lothian, to aid its expansion north of the border.

While other companies in the construction industry have felt the pinch, Project Scaffolding – which designed and erected the scaffolding for the iconic Sage Gateshead music centre – has prospered and has just completed its biggest contract in its history – part of the £275m Union Square retail development in Aberdeenshire for Miller Construction.

Union Square will create a new retail and leisure centre in the heart of Aberdeen and will create 1,000 jobs when it opens next year.

Project Scaffolding managing director Mick O’Donnell, said: “A&A Solutions has provided a much more proactive approach than we’ve ever experienced and it really has transformed our business by helping us realise what we want to achieve on a much larger scale.

“Working with them we have put strategic objectives in place so we are growing and challenging ourselves.

“Although the trading environment remains challenging we are one of the few companies in the region’s building sector that is going in the right direction.”

Other projects that have been helped along by the firm include the £400m STaG development, which is a partnership between South Tyneside Council, Gateshead Council and Carillion firm inspiredspaces to creating state-of-the-art secondary schools for the two boroughs.

The firm has a number of ongoing framework agreements with some of the country’s biggest contractors, including Balfour Beatty, British Gas, Sir Robert McAlpine and Miller Construction and expects to be involved in further education contracts as part of the Government’s Building Schools for the Future programme.

“By restructuring our day-to-day practices we have managed to drastically reduce our outgoings, which has allowed us to be in a stronger position to win contracts,” Mr O’Donnell said.

Anthony Finnegan, from A&A Solutions, said: “The financial model has been proven to work for any business, from sole traders to sizeable companies such as Project Scaffolding; and is due to many years of experience in commercial accounting.”

We are one of the few companies in the region’s building sector that is going in the right direction.

Source: NEBusiness.co.uk
 
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