Last updated 23 May 2022
Bowmer & Kirkland Ltd
Bowmer & Kirkland is one of the UK’s largest privately owned construction groups with an annual turnover of £1 billion. Operations range from main contracting and housebuilding to sub-contracting activities, including cladding, painting and decorating, coal screening and steel rebar. Founded in 1923 by Robert Kirkland, the group is still controlled by his descendants, turns over nearly £1.2 billion a year and employs around 1,600 people.
Financials
In 2011, Bowmer & Kirkland’s revenue topped £700 million, only to fall away. Revenue subsequently grew substantially and in 2019 passed the £1 billion mark for the first time.
In the 12 months to August 2021, turnover rose 4% to £1,178.1 million (2020: £1,110.4 million). Operating profits were static at £60.3 million (2020: £60.5 million). At a pre-tax level, profits rebounded to £65.3 million (2020: £53.2 million).
To view the financials for Bowmer and Kirkland Ltd, visit Companies House and use Company ID 00701982.
Operations
Bowmer & Kirkland its head office in Derbyshire, regional offices in Birmingham, Manchester, Motherwell, Reading and Sunderland and offices in the USA.
Construction
Construction is the core business and Bowmer & Kirkland works across the public and private sectors. Clients range from local authorities to county councils such as Leicestershire to private developers, including Ashall Property, MEPC and Sage, retailers such as Next, universities in Newcastle, Manchester and Preston and on student accommodation projects for private developers such as Maven Capital.
The group works on some major projects such as the £200 million Becketwell Performance Venue in Derby for St James Securities and ASM Global (Project ID: 21350515) and is on a number of major framework agreements including the £1.8 billion North West Contractor Framework 2022-2026 (Project ID: 21151509).
Housebuilding
Peveril Homes is Bowmer & Kirkland’s housebuilding operation and builds and sells homes across the Midlands in Derbyshire, Leicestershire, Nottinghamshire and Staffordshire.
Peveril Securities
Peveril Securities is the wholly owned investment and development division of Bowmer & Kirkland and operates on a nationwide basis across all sub-sectors of the UK real estate market. Peveril specialises in investment and development both in a sole capacity and in joint venture with other developers such as Sladen Estates, St Francis and Urbo Regeneration. Peveril finances all acquisitions from balance sheet capital.
Glenigan Data
In Glenigan’s ranking of the UK’s top 50 contractors by orders for the year to Q1 2022, Bowmer & Kirkland had won work totalling £748.1 million (2021: £549.5 million) and was ranked in 18th position (2021: 19th).
Regionally, the group is ranked amongst the top 10 contractors in four of the UK’s 12 economic regions. The greatest regional exposure is in the North West, where Bowmer & Kirkland’s order book totalled £334.9 million and the group was ranked second. In the North East, where Bowmer & Kirkland is the top-ranked contractor with an order book totalling £178.5 million. The group was ranked seventh in both the East of England and East Midlands with orders totalling £154.7 million and £85.3 million respectively.
In terms of housebuilding, Glenigan’s data showed planning activity resumed in 2016, when B&K submitted planning applications to build 318 units. After a gap of three years, B&K returned to the planning system but did not apply to build any new homes in 2021: (2020: 58 units).
Conclusion: Bouncing back strongly
After a fall in 2021, B&K’s order book rebounded by 36% in the 12 months to Q1 2022 but remains below the levels achieved before the Covid-19 pandemic. However, turnover has continued to rise and after a predictable hit to the bottom line, profits stabilised at an operating level and rose before tax.
The group does continue to work overseas in Europe and the USA but work fell in the former. The United Kingdom is the driver and there is a tight geographical concentration on the east and north of England and a focus on building work.
Peveril Securities has played an important part and is progressing major schemes from £48 million West Bar development in Sheffield with Urbo Regeneration (Project ID: 21172269) to the £200 million New Albion Place development in Nottingham in joint venture with Sladen Estates (Project ID: 20316992).
Planning activity for new housing has again stopped but contracting remains the main generator of cash and the rise in revenue is reflected in the net cash position, which at the end of the financial year rose to £514 million (2020: £482 million). Despite the drop in profits, net assets also strengthened to £508 million (2091: £475 million).
Aided by the government’s furlough and strong revenue, the group was able to retain its workforce and the average number of employees was virtually static in the latest period at 1,554 people (2020: 1,577 people). The wage bill rose by 3.6% to £84.6 million (2020: £81.6 million) but remains below pre-pandemic levels.
The risk profile has grown but remains relatively low as Bowmer & Kirkland does not work on many major projects, which tend to carry more risk. In the 12 months to Q1 2022, the average contract award was again valued by Glenigan at £22.0 million (2019: £22.0 million).
Going forward, the public rented sector show signs of promise. Long-term frameworks, particularly in education, will support also workload at one of the UK’s largest contractors. While there will clearly be some impact from the virus on the group’s activities, B&K is clearly large enough and financially strong enough to remain one of the industry’s main players.
Winning Work With Bowmer & Kirkland
Bowmer & Kirkland is registered with Achilles, CHAS, Constructionline, RoSPA, the SafeContractor Scheme and an associate member of the Considerate Constructor’s Scheme. The group has been a member of the CRC Energy Efficiency Scheme since 2009 and produced a 52.8% reduction in its benchmark up to 2013. Bowmer & Kirkland uses its own internal prequalification for its supply chain and asks suppliers to fill out standard questionnaire, which can be viewed here.
The group requires document specific details in the following areas: Code of Conduct; Health & Safety Requirements for Contractors; Health & Safety Policy; Environmental Policy; Sustainability Policy, Waste Reduction Policy and Quality Policy.
Bowmer & Kirkland uses an external consultant, Planet Positive, to help align its social responsibility policy with the principles and guidelines of ISO 26000 – Guidance on Social Responsibility. These policies were assessed and certified in May 2012. All suppliers and sub-contractors are expected to meet the principles within this scheme. In 2012, Bowmer & Kirkland also implemented a holistic social responsibility policy based on the International Organisation for Standardisation standard 26000 2100 – guidance on social responsibility.
A quality management system registered to meet requirements of ISO9001:2008 by a UKAS-approved certification body is applied to all aspects of project. Contract specification is written into sub-contract orders with suppliers. This specification is also given to sub-contractors during pre-contract meetings to ensure nothing is overlooked. Sub-contractor’s method statements are reviewed prior to works commencing to ensure the proposed works meet the contract requirements.
Details on the group’s supply chain can be found here.
Key Bowmer & Kirkland procurement contacts include:
Group construction director – David Scorer, tel: 01773-853131
Pre-construction manager – Ben Goldstraw, tel: 01773-853131
Managing quantity surveyor – Paul Marsland, tel: 01773-853131
Feasibility manager – Richard Downing, tel: 01773-853131