Hull-headquartered Spencer Group has hailed a “landmark year” after it reported record profitability and built up a £275m pipeline of work.
Spencer Group is one of the UK’s largest privately owned multidisciplinary engineering businesses. Based at One Humber Quays, it employs a workforce of about 315.
For the year to 31 March 2017, the company reported turnover of £113m and pre-tax profit of £5.41m. This is after a six-month period to 31 March 2016, during which Spencer Group reported figures of £44.7m and £2.61m respectively.
Executive chairman Charlie Spencer OBE said the company had recorded record profits as a result of completing projects of “very significant scale, challenge and complexity”.
“By understanding our clients’ needs we have been able to deliver business critical projects and this year’s results are testament to this focus,” he added. “In the current year we are continuing to demonstrate the pace, energy and imagination we bring to solving our clients’ engineering challenges.
“Looking ahead we are well placed to continue to capitalise on the industry-leading capability we have in the fields of rail, energy, materials handling, specialist engineering and design.”
In a strategic report for the year, the engineering giant said such results were in line with expectations. Looking ahead, it added that it had entered the current financial year with secured work in hand of £63.4m and a pipeline of £275, from which to draw its opportunities.
On Brexit, Spencer Group alluded to the fact that the impact on the UK economy is currently unknown but did detail preparations being made ahead of the official departure from the European Union with the company having “identified a number of European-based business sectors that have an interest in taking advantage of skills that UK-based engineering specialists can offer”.
“The company is actively seeking to take advantage of any opportunities to which its engineering skills can be applied,” it added.
Concluding, commercial director Graham Beal said: “These results are highly encouraging and reflect a landmark year for the business, during which we have made strong progress towards the successful delivery of two of the largest projects the company has ever undertaken, demonstrating once again the extent of our capability and expertise.
“Having steered the £200m Energy Works power plant in Hull from concept to development, we are now delivering the £35m package of civil engineering works for the project, working with principal contractor M+W Group and on behalf of a consortium of international investors.
“At the same time, we are delivering a £65m scheme to design and build facilities for the handling, storage and rail-loading of wood pellets at the Port of Tyne, to support the conversion of Lynemouth Power Station to biomass burning.
“We expect to complete this project towards the end of the year.”