MJ Gleeson鈥檚 former contracting arm becomes GB 星空传媒 Solutions and posts 拢908,000 profit

The former contracting arm of MJ Gleeson this week unveiled an ambitious three-year growth plan as it announced it is finally dropping the Gleeson name.

Gleeson 星空传媒, formed after a buyout from its troubled parent in 2005 (see box), is rebranding as GB 星空传媒 Solutions.

Martin Smout, the chief executive who led the buyout, said it had made a 拢908,000 pre-tax profit for the year ended 31 June 2007, an eightfold increase on the figures for the previous period. Turnover was 拢177.5m.

Smout said it aimed for a further 25% growth this year and forecast a 拢1.4m profit on a turnover of 拢225m. The company then aims for a further 15% growth each year for the next two years, reaching a 拢7.3m profit in 2010 on a 拢300m turnover.

Smout said the firm, whose main markets are in the education, residential and health sectors, was confident despite toughening market conditions. He said: 鈥淲e seem to be weathering the market uncertainty well. Our work is split roughly 50-50 between public and private sectors, which helps with risk.鈥�

He said expanding its development business was still his main focus, ahead of increasing its presence in PFI markets, where it has acted as a contractor but has not yet formed part of a special purpose vehicle.

Smout said that it wanted to drop the Gleeson name rather than wait for the expiry of the licence for its use this summer. MJ Gleeson retains a 20% stake in the company.

Birth of a company

March 2005 MJ Gleeson plans to offload building division after a 拢16.6m loss

July 2005 Martin Smout, director of the building division, leads buyout. Smout, commercial director Peter Stone, and finance director Michael Lethaby each put in 拢80,000 for an 80% stake in the company.

Postscript

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