Last updated 17 June 2022
Keltbray Group
Keltbray Group is a specialist turnkey contractor working on sectors ranging from demolition and civil engineering, rail and environmental materials management nationwide. Formed over three decades ago, the privately-owned group began working in demolition and civil engineering but has expanded into a more complex business working on a broader range of sectors and now turns over nearly £400 million a year and employs around 1,500 staff.
Financials
The management’s decision to expand out of the core demolition and civil engineering markets brought substantially growth before a downturn in 2018. Revenue continued to grow in 2019 at the expense of profitability and the COVID-19 pandemic sent the group into the red.
In the 12 months to October 2021, turnover revenue slumped to £389.5 million (2020: £428.6 million) but losses did narrow to £4.2 million before tax (2020: £9.4 million loss) and £1.8 million at an operating level (2020: £8.3 million).
To view the financials for Keltbray Group, visit Companies House and use Company ID 02810840.
Operations
Keltbray comprises eight companies but operates three main divisions for financial reporting purposes: demolition and civils, rail and environmental materials management. The group has its headquarters in Esher and offices at Ashford (Kent), Bathgate, Basildon, Bedfont, Brentwood, Crewe, Doncaster, Glasgow, London, Nottingham, Pontypridd, Rugby, Runcorn and Silvertown in east London. Keltbray also has two overseas offices at Sydney in Australia and Toronto in Canada.
In the UK, the group has two main divisions: Keltbray Built Environment and Keltbray Infrastructure.
Keltbray Built Environment
Formerly known as Specialist Contracting Services, this is the core business and works for a range of clients from blue chip developers such as Helical Bar and Land Securities to leading main contractors, including Brookfield Multiplex and Lendlease. The D&C division works on major commercial schemes, such as the £300 million 6-8 Bishopsgate (Project ID: 13347561).
Civil engineering margins remain highly competitive and this division bore the brunt of the downturn. Turnover subsequently rebounded but bore the brunt of the downturn in 2020 and fell back again in the latest period to £243.4 million (2020: £260.7 million).
Keltbray Infrastructure
This division covers rail, energy and highways works and other subsidiaries including Doosan Keltbray. In 2021, Keltbray acquired contracts and assets form the infrastructure division at failed contractor nmcn, which saved 117 jobs.
Earlier, in July 2009, Keltbray acquired Gamble Rail from MCR Corporate Restructuring for an undisclosed sum. In April 2010, the group relocated its head office from Wandsworth, south London, to Esher in Surrey. In September 2010, Keltbray consolidated its rail expansion by acquiring Crew-based rail consultants Aspire, which gave the group wiring engineers, supervisors, linesmen, isolation and permanent-way staff. The expansion paid off 18 months later, when Keltbray made a breakthrough into the rail sector by winning a major package on the West Coast Main Line, and further expansion included
Keltbray Energy is the power distribution, transmission and renewables operating business, which works on national de-carbonisation imperatives. Keltbray Energy was formed in November 2020 and includes the assets from the acquisition of SPIE’s overhead lines business in 2018.
Doosan Keltbray is a joint venture between Doosan and Keltbray that is working on a number of de-planting and asbestos removal contracts at Bradwell Power Station, as part of the five-year £304 million demolition framework contract set up by nuclear plant operator Magnox. Doosan Keltbray is one of six contractors on this framework and is working on other long-term agreements such as LHC’s £30 million asbestos removal framework in London (Project ID: 18206920).
Wentworth House is Keltbray’s structural engineering operation and works on temporary and permanent concrete and steel structures.
In 2021, turnover at the infrastructure services business fell to £146.1 million (2020: £168.0 million).
Glenigan Data
Keltbray has previously featured in Glenigan’s top 100 of the industry’s main contractors, but as the predominant focus is on specialist rather than main contracting work the group did not feature in this ranking in the 12 months to Q1 2021, when the group’s order book as a main contractor was £22.8 million (2020: £57.5 million).
Conclusion: Losses stemmed
The onset of the pandemic hit Keltbray hard with a strong run of revenue growth ending and the business slumping into the red. In the 2020 financial year, Keltbray took a hit from exceptional costs of £7.2 million paid to employees while on furlough and another £1.5 million in redundancy costs and in the latest year has had to set aside £6 million after an investigation by the Competition & Markets Authority after a probe into demolition cartels.
Losses have bene stemmed by cutting overheads. The workforce was cut by 4% and then by 14% in the latest trading year, when the average number of employees fell to 1,544 people (2020: 1,809 people) and this reduced the wage bill by 9% to £80.6 million (2020: £88.4 million).
Keltbray remains best known for demolition, but a gradual move into rail has paid off with major projects coming in, such as the West Coast mainline scheme and turnover at this division doubled in recent years only to slow more recently. A majority stake in its electrical engineering arm, Keltbray Lagan Power, which has been part of the group since 2018, was sold to a management buy-out in May 2021.
The group’s strategy is to work on more sustainable developments, and Keltbray’s role as a specialist contractor should help keep the risk profile low. The average contract won by Keltbray as a main contractor, in the 12 months to Q1 2022 reduced to £5.4 million according to Glenigan (2021: £7.6 million).
After falling in 2020, the order book has grown strongly and at March 2022 was £530 million (2021: £310 million). is £224 million (2019: £257 million) and the reduction in overheads, have placed the business in a better position going forward. As a conservatively run business with a high level of returning clients, Keltbray remains in a strong position as the industry grows out of the problems caused by the pandemic.
Winning Work With Keltbray
Keltbray is accredited to a range of industry bodies, including CHAS and Constructionline. The group is registered with ISO 9001, ISO 14001 and OHSAS 18001 and is working on a contractor’s assurance case towards ISO 18001. Keltbray has also signed up to the WRAP initiative aimed at halving the group’s landfill and is a member of the Supply Chain Sustainability School.
Commercial director, Peter Suchy, manages Keltbray’s procurement, estimating and surveying functions.
Key Keltbray procurement contacts include:
Commercial Director – Peter Suchy
Tel: 0207-643-1000
Procurement Manager – Willie McHugh
Tel: 0207-643-1000