| The expansion
plan is being overseen by chief
executive Dean Webster and deputy
chairman Derek Pitcher, both
promoted last month. They plan
to expand Cyril Sweett through
three main channels: by expanding
their presence in growing markets
such as education, biotechnology
and pharmaceuticals; growing
the firm's regional operations,
including setting up offices
in the North-east; and becoming
a better established international
player, particularly in western
Europe, the Middle East and
Asia Pacific.
Webster said Cyril Sweett, which
is a private limited company,
had moved to adopt a more corporate
organisation after its £6.5m
management buyout from agent
Chesterton in 1998. He said:
The business has trebled since
1998 from 150 to 450 [staff].
We need to start organising
ourselves on a more structured
basis.
Webster said the firm had created
a regional board to oversee
its operation across the UK.
It had also split these operations
in five main regions: London
and the south-east, Scotland,
Ireland, the Midlands and the
south-west. He added that the
firm had hired a team of researchers
to analyse future movements
in the market and created account
plans for the firm's top 20
clients. He said: We are trying
to become a lot more strategic
as well as aligning ourselves
more closely to our clients.
Derek Pitcher, deputy chairman,
said that the company's move
into markets such as education
could include taking equity
stakes in the government's Schools
for the Future initiative. Cyril
Sweett took a stake in the Plymouth
£23m LIFT health scheme
alongside partners Midas Group
and Sutton Harbour.
Webster said: As a principle
it gives us potential for longevity
and sustainability in public
sector markets. It's primarily
a driver for fee work. We're
keen to work in the schools
market as well. We are looking
at one or two with a view to
equity.
Webster said the growth drive
would be mainly organic, although
the firm would consider different
vehicles for international expansion.
The firm owns one-third of Dublin-based
QS and project manager Boyd
Creed, with an option to buy
the firm outright. Webster said:
In principle we could own it.
We need to create arrangements
internationally that suit each
particular region.
Webster said the merger with
DG Jones, which was signed in
early 2002, had taken time to
establish itself. He said: They
are a complicated structure,
with separate structures for
the Middle and the Far East.
We need to pull the whole thing
together.
Pitcher said he and Webster
had been given a free rein to
run the business by chairman
Francis Ives, who led the buyout
in 1998. Ives is now concentrating
on the firm's global expansion
with international director
Jimmi Bradbury. We are trying
to become a lot more strategic
as well as aligning with clients
Dean Webster, chief executive
said: Francis has been good
at giving us space. He's not
like some senior partners who
want to hold on. He has let
us run the business. He remains
a great figurehead for us.
Pitcher said the firm saw itself
as a strong player in the QS
and project management sector.
He said: We see ourselves as
a top five construction consultant,
not in numbers but in reputation.
Before we were seen as strong
in particular sectors or major
projects. I think our name is
much stronger than it was across
a wider range of sectors now.
Pitcher said that the firm had
kept in contact with airports
group BAA, despite the client
dropping Cyril Sweett temporarily
from its framework agreement
last summer. He said staff previously
working for BAA had been reallocated
to other parts of the business.
Pitcher said: We are keen to
maintain involvement in that
market. I also think we can
transfer that experience to
airports work overseas. Pitcher
also said the firm was there
for the long run in the rail
market despite recent cutbacks
made by client Network Rail.
Sweett smell of success
The firm's turnover has grown
steadily in the past two years.
Results posted last month show
sales of £30m for the
year to 31 March 2004, up from
£25m in 2003. Pre-tax
profit mirrored this, up to
£2.7m in 2004 compared
with £1.9m in 2003.
Webster said he expected the
growth to continue gradually,
up to £35m in 2005 to
£42m in 2006 and £50m
by 2007. This £50m is
expected to break down as £7-8m
in consulting (advising on procurement,
tax and legal), £20m project
management and the remaining
£22m in quantity surveying.
Published
11 February, 2005 in Building
Magazine
By Phil Clark |