Quartzelec has optimistic forecast for 2014 following strong results
26/02/2014 Quartzelec Ltd (Cegelec Industrial Controls)
Quartzelec's Building Services business has established an enviable reputation for delivering professional, cost effective and well designed and implemented, LV/HV installation and maintenance projects in the UK's fiercely competitive electrical contracting sector. Almost doubling in size over the past two years, Quartzelec's Manchester business has recently secured a portfolio of prestigious contracts and while remaining ever cautious, and with margins being fiercely competitive, the year ahead already looks promising with indications that the volume of work will continue to increase."Effectively controlling project costs is paramount in today's market," stated Martin Broughton, General Manager for Quartzelec's Manchester operation. "The construction sector has continuously been squeezed but we refused from day one to get involved in 'suicide bidding' - instead choosing to focus on client relationships and offering technical expertise to help reduce project costs."
"While we continue to tender for and be awarded prestigious contracts, we have seen a string of competitors exit the market. This is particularly true for those that undersold on margin or failed to acknowledge the importance of building strong client relationships. We would also anticipate that several more players in the electrical contracting field will exit this year as cash either eventually runs out or losses become unsustainable."
As a result, over the past two financial years Quartzelec has seen growth of 38% and 50% respectively in its Manchester based contracting business. Whilst price remains an influential factor, reputation, ability to deliver and quality of people play an equally important part.
In recent months Quartzelec has secured a number of high-profile, multi-million pound contracts covering the planned and reactive delivery of a range of mechanical and electrical services. These include: Delivering all the necessary related works for the new heating, electrical, water, ventilation, communications and lighting systems within the Sheffield Cathedral Gateway Project; Completing a £1.4m multi utility contract with Wrightington, Wigan and Leigh NHS Foundation Trust that involved high and low voltage electrical infrastructure, gas, water and telecommunications; And undertaking all the lighting, power, containment and life safety systems as part of a £1.6m refurbishment of two campus buildings in the city centre for Manchester Metropolitan University.
In 2013 Quartzelec was also heavily involved in delivering electrical and mechanical installation work as part of the long term £8.6 million Prince's Regeneration Trust Middleport Potteries conservation and regeneration project in Burslem, Stoke-on-Trent. The last working Victorian ceramics factory in the UK, the aim was to not only renovate and save red brick Grade II listed buildings but also adapt them for use by new businesses and establish an education and heritage centre.
But it's not just the high-value, large-deliverable contracts that have contributed to Quartzelec's success over recent months; it is its ability to tender, win and provide the service levels necessary for smaller contracts where delivery and value for money are just as important.
Several recent examples include: A quarter million pound contract for all the electrical installation work at Hatherlow House, a new Methodist Homes (MHA) development in Southport; And a number of rewires and refurbishment projects in a variety of nursery through to senior schools with a collective value of over £1.7m. Many of these projects were delivered during the school summer holidays or other shutdown periods so were time critical. Close liaison with the teaching and school staff plus attention to working practices was essential for successful and smooth completion of these projects.
"Our strategy is to employ the best people available; develop a positive and trusted relationship with clients; and be selective about those we work with," concluded Martin Broughton. "We've also targeted more of the Blue Chip clients in an effort to avoid the potential for bad debt and have made it clear that we will not enter into e-€‘bidding or work at negative margins, a strategy that has been rewarded in client loyalty allowing the significant growth of the business. Market conditions remain extremely competitive, but our ability to connect with and retain clients provides real confidence for the sustainable growth of the business going forward."
For more information, please contact:
Jody Townsend
Quartzelec Ltd
Tel: +44 (0) 1788 512512 or
Email: Jody.Townsend@Quartzelec.com
Web: www.quartzelec.com
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