injecting realism12 Feb 2010 17:14
Before you all get carried away, do consider the following:
(1) What is important is not how much work they have or which orders they win, but the price at which they win them. Word on the grapevine (and I'm in construction in the same area as their HO) is that they are virtually buying work, This is ok as a survival strategy, but is not going to produce large proffits. They needs a tight reign on costs to keep in the game.
(2) The Lidl store may have been worth 1.8m, but that is meaningless. what were the ground conditions?? Building on difficult land can lead to high costs in groundworks. £1.8m is not a lot of money for a Lidl type store. Margins on this are potentially tiny, and Lidl have a reputation for being very clever contractually.
I have these too, and think they are good for long term, I am not expecting any rising star though.