News article

The construction, investment, development and facilities management group Robertson, delivered a turnover down four per cent at £157.1million and recorded pre-tax losses of £2million.

Despite posting losses to the year end November 30, 2008 Executive Chairman Bill Robertson believes the group are well positioned to exploit the next growth cycle.

Robertson's eleven businesses include seven regionally-based construction companies, a property development company, a timber frame manufacturing business, a facilities management company and a business dedicated to PFI and PPP investments.

Executive chairman, Bill Robertson, stated that the economic downturn had been extremely challenging for many of the businesses. In dealing with these challenges encountered in 2008 Robertson has successfully reshaped those businesses most affected by the downturn.

However he insists that the businesses have adapted well to the changes and by creating significantly lower operational cost bases, these businesses will now operate effectively under the continuing tough trading conditions being felt throughout the industry.

He said: "Robertson is clearly not immune to the current economic downturn and in keeping with our peers we have had to adapt to remain competitive in our market places.These changes have been challenging and I expect the next few years to be even more intense as we continue to adapt to the changing economic climate.

"However, this is not new and Robertson has continually evolved throughout the past 40 years to meet the demands of what has been an ever changing market place and we will continue to do so.

"We have continued to address the changes in public sector procurement being developed by the new Scottish government and as a result were successful in being appointed one of the construction partners for the NHS Framework in Scotland.

"I believe at Robertson we have created businesses which are progressive and forward thinking and this will allow us to meet these challenges and position ourselves effectively to continue to expand throughout the next growth cycle for the industry."

Robertson continues to progress its strategy of demerging mature businesses to allow them the opportunity for accelerated value creation. To this end Robertson de-merged its seven regionalised construction companies from its main group to form the Robertson Construction Group. With this change in place Robertson now consists of three operating groups that work across the UK and Ireland.

The construction group is expected to generate a turnover in excess of £120million in its first year of trading.

Earlier this year it was selected as a principal supply chain member on the NHS Frameworks Scotland scheme as part of the RD Health consortium which includes Dawn Construction.

Through the NHS Framework agreement Robertson Construction Group has since been selected as the main contractor to deliver the £115million Emergency Care Centre at Aberdeen Royal Infirmary, the £9million Migdale Hospital at Bonar Bridge and a £30million Community Health and Care Village.

Robertson Capital Projects, the investment arm of Robertson, continues to succeed having recently been shortlisted to become the private sector delivery partner for the first Scottish Futures Trust's Hub scheme and was named as the preferred bidder on the £100million Tayside Mental Health Developments with JV partner Morgan Sindall Investments.

Elsewhere Robertson Property, which was also de-merged from the main Robertson group to form part of the Robertson Construction Group, unveiled Baltic Place - a £35million prestige office development in Gateshead. The building which achieved its practical completion in August looks set to be a third occupied by the end of the year.

Turnover at Robertson FM was up 27.5% to £13million for the year ending 2008 and is projected to be up to £18million by the end of 2009. The business has mobilised a number of contracts following the construction phase of the Dundee and Angus Schools re-building programmes and has expanded successfully into the private sector. The business has a very strong forward order book - in excess of £450 million and will be adding to the range of specialist facilities services offered over the next year.

Robertson Timberkit has been hit badly by the collapse of the private housebuilding market. However all work has been secured till the end of 2009 and over 50 per cent of planned turnover has been secured for 2010.

Robertson Homes
Robertson Homes, now a separate trading company in its own right, in keeping with its peer group suffered a significant downturn in activity recording a pre-tax loss of £8.1million on a turnover of £38million.

A major element of this loss emanated from a significant writedown on its landbank
Bill Robertson added: "Robertson Homes has not escaped the difficulties affecting the house building sector across the country and has re-shaped its business to match the changed market place.

"The business has been restructured into two distinct geographical areas allowing a much more targeted focus..

"We believe the re-shaping and corrective measures implemented will allow Robertson Homes to maintain and strengthen its position as one the country's most established house builders during the next upturn for the sector."

"We also remain committed to innovation and the coming year should see some exciting product developments from our Homes business which will allows us to take a positive step forward."

In conclusion Bill Robertson summed up stating;
"Although we are reporting on the year 2008, we are currently heading towards the end of 2009. In terms of workload both years have proved extremely challenging for construction related companies."

"We believe we have now created solid platforms to successfully grow our separate businesses, once markets begin to improve. Private sector finance will be crucial to that improvement and whilst we have been able to rely on long term relationships with our funders over a very challenging period for banking, it is imperative private finance and investment begins to flow into the Homes, Property and Construction sectors in anticipation of a possible reduction in public sector spend."