Last updated 24 January 2023
SDC (Holdings) Limited
SDC (Holdings) Limited is a regional contracting group that was formed in Bedford in 1972 by David Ledsom and Brian Fox. In 2007, the company began operating as an employee benefit trust after Mr Ledsom and Mr Fox resigned as directors. SDC continues to work out of Bedford, turning over nearly £170 million a year and employing more than 360 people.
Financials
After a rise in the previous year, revenue fell back in the 12 months to September 2021 to £168.3 million (2021: £179.5 million) and operating profits slumped to £2.6 million (2021: £4.2 million). At a pre-tax level, profits also fell, dropping to £2.7 million (2021: £4.2 million).
To view the financials for SDC (Holdings) Ltd, visit Companies House and use Company ID 01756144.
Operations
SDC Builders
SDC works on projects from £5,000 up to £80 million and SDC Builders is the core operational business. The main projects operation has traditionally strong links with the motor industry but the education sector has become the main source of revenue in recent years.
In August 2016 SDC was one of nine contractors to win a place on a £500 million framework with the University of Cambridge (Project ID: 15240929) and in 2019 this produced one of SDC’s biggest projects to date: the £40 million Project Atria (Project ID: 16233488). In 2022, the education sector again was the main driver of revenue but fell back to £57.0 million (2021: £90.1 million).
The next largest source of revenue came from commercial and leisure work, which leapt to £40.1 million (2021: £7.9 million). General industrial work continued to rise, providing turnover of £34.4 million (2021: £28.0 million) and student accommodation turnover rose to £8.0 million (2021: £2.6 million) but Special Projects revenue fell to £22.0 million (2021: £33.3 million). Healthcare work also produced revenue of £4.8 million.
Elsewhere, income from plant hire and vehicle servicing slipped below £0.1 million (2021: £0.1 million). The remainder of the revenue comes from supplies business Limegrove and a vehicle servicing business.
SDC’s specialist electrical operation, Sedac, was closed in 2011 due to what the management described as ‘poor returns’. SDC continued to operate as a sub-contractor on mechanical and electrical packages and primarily for SDC Builders, but has since returned to employing some trades directly.
SDC (Anglia)
The housing operation was formed in 1995 but returns have been poor and in 2012 the management temporarily withdrew from this area, which cost the group £351,965. This was not a permanent withdrawal and in 2017 the group secured planning permission on two sites to be built out, along with a small office block in Caxton (Project ID: 151312466).
SDC Properties
This is SDC’s property investment business and concentrates on property Development. The group has a site at Cottenham, which will be built out and retained for rental.
Glenigan Data
After doubling in the previous year, orders subsequently halved in 2022 to £102.1 million (2021: £213.4 million) and the group was ranked in 81st position in Glenigan’s rankings of the industry’s Top 100 contractors (2021: 43rd).
Glenigan’s research does not show any new detailed planning applications for private housing units in the 2022 calendar year.
Conclusion: Still taking bigger risks?
After motoring into Glenigan’s ranking of the industry’s Top 50 contractors in 2021 on the back of a handful of major projects, including its biggest project to date: the £50 million Lockton House office scheme in Cambridge (Project ID: 20446729), SDC has subsequently slumped out of this echelon in 2022.
The focus remains on building work and larger projects such as the £30 million workshop for Aston Martin at Silverstone (Project ID: 22215543) and the £28 million bioscience building in Cambridge (Project ID: 21377233), so the group’s risk profile has not fallen despite orders dropping off. In 2019, the average contract won by SDC was valued by Glenigan at £8.3 million but this measure has consistently risen and in 2022 reached £12.8 million (2021: £11.8 million).
The operating margin doubled in 2020 and firmed to 2.2% in 2021 (2020: 2.1%). The regional focus has traditionally been built on the group’s traditional exposure to the East of England, but only 35% of orders by value won in 2022 were based in this region according to Glenigan’s data (2021: 87%).
The group has dipped its toes back into development, but to develop existing consented sites with Glenigan’s research showing no signs of planning activity again in 2022. A start is expected on a nine-unit site at Cottenham.
Net assets strengthened again to £1.9 million (2021: £1.7 million) but cash at the bank and in hand again dropped to £21.5 million (2021: £28.5 million) and rising labour and material costs remain a concern. The management had addressed this and the workforce has been cut by 5% in the two years up to 2020.
In 2022, the average number of employees rose slightly to 362 people (2021: 353 people) and the wage bill increased to £21.1 million (2021: £19.1 million).
The prospect of subsequent margin pressure from material price inflation due to Brexit cannot be ruled out, but SDC is traditionally risk averse, has a reasonable spread of work, a good reputation and an innovative ownership structure that should enable the group to remain a fixture in regional contracting.
Winning Work With SDC
SDC is a member of the Considerate Constructors scheme and accredited to a number of industry bodies, including CHAS, ISO 9001, ISO 14001 and RoSPA and registered with Constructionline.
SDC operates a flexible approach to procurement and works on design and build, two-stage and traditional contracts and prides itself on working to a partnering ethos. This ethos embraces GMP, team working, open book accounting, understanding user needs and requirements, risk-management, steering group strategy, core team delivery, a collaborative approach, value management and engineering, and change management.
Key SDC procurement contacts include:
Estimating department manager at SDC Builders – Simon Morrall, tel: 01234-363-155
Senior buyer at SDC Builders – Juliet Di Giampasquale, tel: 01234-363-155
Juliet.DiGiampasquale@sdc.co.uk
Senior subcontract buyer at SDC Builders – Justin Fletcher, tel: 01234-363-155
Contracts Manager at SDC Builders – Mark Parsons, tel: 01234-363-155
Contracts Manager at SDC Builders – Philip Doherty, tel: 01234-363-155
Chief estimator at SDC Builders – Mark Collins, tel: 01234-363-155
Architect at SDC Builders – Dan Changer, tel: 01234-363-155