receiving a whole raft of business awards both regionally and nationally. So, I must congratulate all ... North East and
LOOKING FORWARD ANNUAL REPORT 2015 British Business of the Year
LOOKING FORWARD JOHN SAYERS, MANAGING DIRECTOR
The targets we set ourselves in 2015 were not only met but, in some cases, exceeded. Along the way we experienced some notable successes, receiving a whole raft of business awards both regionally and nationally. So, I must congratulate all of our employees, directly employed and indirectly employed and all other stakeholders who worked together to accomplish this remarkable achievement. We now charge ourselves with the responsibility of surpassing what was a truly eventful year. Looking ahead to 2016, I find myself exhilarated and motivated by the exciting challenges and changes which, as a team, we plan for and embrace. It is in these constantly evolving times that businesses need to be agile and innovative, constantly developing and growing to meet the demands of progress. From my viewpoint, some of the plans which we will see come to fruition in 2016 include:
AS THE MANAGING DIRECTOR, IT’S ALWAYS A PLEASURE TO WORK WITH SUCH A PROGRESSIVE AND COMMITTED TEAM
BIM – Working in partnership with Teesside University under a KTP arrangement with the innovative goal of creating a bespoke business platform through the integration of BIM approaches and ERP systems to deliver supply chain management and installations not only for Hodgson Sayers but supporting other contractors as a business hub. Apprentices and development of existing employees – The apprentice programme goes from strength to strength. More recruitment plans are underway to consolidate our commitment to apprentice recruitment. Existing employees are also given the opportunity to progress their careers through training and college programmes.
Social Value – The outreaching development of the social values committee to ensure we have a sustainable and responsible approach to our stakeholder engagement. The consolidation of the steering group to underline our commitment to the communities in which we work. Environmental Management – Building on our current ISO 14001 environmental management systems, we are analysing all our outputs with a view to making significant reductions to our carbon footprint. Some examples will be the installation of solar photovoltaics to our premises and introduction of electric vehicles as a more sustainable approach to our business and our responsibilities. As the managing director, it’s always a pleasure to work with such a progressive and committed team. It is rewarding to see the strategy and vision of all stakeholders develop into a clear and measurable product with obvious benefits to the wider community.
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ANNUAL REPORT
FINANCIAL REVIEW
BILLY HODGSON, EXECUTIVE CHAIRMAN
MIKE WADE
2015 has been a year of outstanding achievement on the awards front. While we always keep our feet on the ground we do recognise that the accolades were beyond our wildest expectations. But the reality is that we are the national winners in two of the most prestigious awards – and the credit for that goes to every person in our business.
of UK business at the British Chambers of Commerce (BCC) annual Chamber Awards where we won the Business of the Year Award and the People Development Award.
In October we won SME of the Year at the Constructing Excellence Awards. This is a massive achievement and something that we did not expect. Indeed, it was beyond all our expectations. It was a fantastic accolade not just for the company but for the region. We are all very proud to come from the North East and to be judged the best-in-class in the construction sector throughout the UK was a moment we will never forget.
We are all a team and a hardworking team develops a successful business. I was blown away by the success of the North East at the national awards and I hope the rest of the country is beginning to realise the value our region brings to the UK.
In November we were one of a ‘magnificent seven’ North East companies who travelled to London to celebrate the best
To say we were overwhelmed is an understatement! We were flabbergasted by our success and proud to be part of the Northern Powerhouse that was on full display when North East companies virtually swept the board at the grand final. Not many SME building and roofing companies from the North East of England can claim to be the Best of British!
Our business is based on honesty, decency and integrity and what underpins our success is our family roots and the dedication of our employees, for which I’m incredibly proud.
OUR BUSINESS IS BASED ON HONESTY, DECENCY AND INTEGRITY AND WHAT UNDERPINS OUR SUCCESS IS OUR FAMILY ROOTS AND THE DEDICATION OF OUR EMPLOYEES.
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Investment in our people through apprenticeships and continuing training programme have been at the forefront of our strategic plan for the future development of the company. The results of that commitment reflected in the continuing growth in turnover and improvements in targeted KPIs, some of which are detailed in the comparative performance table below.
PLANNED INVESTMENTS FOR 2016 INCLUDE REPLACING THE CURRENT FLEET OF COMPANY CARS WITH LOW CO2 PHEV VEHICLES.
We continue to actively support the Living Wage Foundation, which has had a marked effect on the perception of the company by all of the stakeholders including clients, supply chain partners and employees as well as being viewed as a positive indication by potential clients. It was particularly pleasing to see Northumbrian Water being accredited during Living Wage Week in November this year, and that it chose to celebrate this with senior HR and Procurement representatives joining our Living Wage Week celebrations at the Beamish Museum. Having purchased the unit adjoining our existing head office facility at the end of 2014 we have invested in updating and integrating this, bringing it up to a standard
which will allow us to make full use of it during 2016. Further investments continue to be made in developing the IT infrastructure and ensuring that it is robust enough to fulfil our requirements in the short term and to accommodate for the planned growth over the mid to long term. In addition to the physical hardware we continue to invest in developing complimentary software. With our Knowledge Transfer Partnership entering its second and final year, we have announced our intention to partner with E-Max systems in developing the integration of its ERP system with our existing systems, and developing bespoke mobile applications to enable us to continue to improve our client servicing capabilities. Planned investments for 2016 include replacing the current fleet of company cars with low CO2 PHEV vehicles, with the associated charging infrastructure at the head office facility. This will be complemented with the completion of the install of a 50KW solar panel array on the head office facility as part of our commitment under ISO14001 to move towards minimising our carbon footprint.
2012 2013 2014 2015 (Forecasted) Turnover 8,451,767 11,336,692 15,014,242 16,757,522 Apprentice Investment Programme 64,000 104,500 228,750 269,907 Apprentices 5 7 16 23 Employees 83 88 97 109 Capital Investment 96,469 173,012 471,616 429,991 Current Ratio 1.37 1.46 1.44 1.76 Acid Test Ratio 1.02 1.07 1.16 1.4
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FAST FORWARD WITH NEW APPRENTICES
NEW LOOK AS WE EXPAND AND GROW
2016 will see a new-look Hodgson Sayers. In recent years we have evolved and grown significantly and we wanted to update our brand to signify all this positive change. The brand refresh which projects a forward looking and outward image, follows almost three years after we changed from Hodgson & Allon to Hodgson Sayers. While there is no name change on this occasion, we believe that our new-look will be very well received. We are also pleased to announce we are steadily integrating a 9,000 square foot facility that adjoins to our headquarters. The new space will be home to our contract management and administrative staff which is over 30-strong.
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It offers a naturally lit atrium, with recently installed data and power cabling under a suspended floor, heating, air-conditioning and lighting. We have completed some minor internal and external modifications to bring the building into line with current requirements which will allow it to become the operations hub for the business from the beginning of 2016.
During the year we welcomed 10 new starters to the team, bringing a total of 23 apprentices as we continue to expand across a range of divisions. One of them will be studying for a BTEC Level 2 Business Administration qualification through the North East Chamber of Commerce. Four will be completing a three year apprenticeship, learning skills in their designated fields of either slating and tiling or bricklaying at Newcastle College and New College Durham.
IF YOU GET THE RIGHT OPPORTUNITY, WORK HARD AND STRIVE TO REACH YOUR ULTIMATE POTENTIAL, YOU WILL HAVE A SUCCESSFUL CAREER. A further four will be studying built-up felt roofing at Newcastle College with another apprentice studying Association of Accounting Technicians at New College Durham. We were impressed with the eagerness of all ten apprentices to learn and ask questions in the interviews. We also had a number of candidates who applied for our administrative position. Through our relationship with the North East Chamber of Commerce we are
pleased to offer the BTEC Level 2 Business Administration qualification. Dean Goyns, contracts manager, said: “Each of the apprentices will be assigned a mentor who they can go to for guidance and support. We have hired all the apprentices at the same time so that they can bond together and share the same learning experience, it is important that they can start off at the same level and share and discuss their journey. “Our executive chairman, Billy Hodgson, managing director, John Sayers and most of the contracts managers started their careers as apprentices, it is a central plank of our culture and we have the best skills and expertise to guide the new starters. Winning the apprenticeship category of this year’s North East Business Award was a tremendous accolade for the business and it should also send a very positive message to all our apprentices that they are part of a company that values people development very highly.” Andrew Robson, Head of Training at NECC, said: “As we’ve seen from the region’s leading business people who started their careers as apprentices, if you get the right opportunity, work hard and strive to reach your ultimate potential, you will have a successful career. Good luck to the new recruits at Hodgson Sayers.”
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CREATING HISTORY -2015
2015 was a fantastic year for Hodgson Sayers. Incredibly, we won not one but three national awards as we travelled to London twice in the space of a month for what would turn out to be absolutely stunning results.
“IN ITS PURSUIT OF IMPROVEMENTS IN PERFORMANCE WAS ONE OF THE FIRST CONSTRUCTION COMPANIES IN ITS REGION TO RECOGNISE THE IMPORTANCE OF EXTERNALLY VERIFIED QUALITY STANDARDS.”
Our first success was at the Constructing Excellence Awards, Grosvenor Hotel, London, where we scooped SME of the Year UK 2015. This was then followed by the British Chamber of Commerce Awards where we won the awards for People Development and British Business of the Year.
AWARDS AND PRIZES IN 2014 AND 2015 CONSTRUCTING EXCELLENCE – SME OF THE YEAR UK 2015 What the judges said “With over 35 years in the industry, this organisation has excelled over the past few years with a change of management and new headquarters in 2007. This saw a new future direction, planned growth and development strategy. It is active members of industry body organisations including NFB, Competent Roofer and the Trustmark & British Safety Council. It holds accreditations with CHAS, SafeContractor, Achilles B2, Constructionline and BRE Loss Prevention Certification Board. In its pursuit of improvements in performance was one of the first construction companies in its region to recognise the importance of externally verified quality standards in 1996 and, consequently, followed by many others.
BRITISH CHAMBERS OF COMMERCE AWARDS – PEOPLE DEVELOPMENT AWARD AND BRITISH BUSINESS OF THE YEAR
“THE WHOLE OF THE BUSINESS BOUGHT INTO THEIR APPROACH FROM THE APPRENTICES, THROUGH TO BOARD MEMBERS.”
At a grand final in London, Hodgson Sayers took top slot in the People Development Award and went on to beat 70 companies present on the night to British Business of the Year 2015
LHC - Project of the Year in Association with ISOS Housing for re-roofing scheme in Prudhoe Intelligent Membrane Association Contractor of the Year Intelligent Membrane Association Craftsman of the Year for Billy Wilson, one of the firm’s first apprentices who started in 1982. National Federation of Roofing Contractors - Gold Award for Excellence in Health & Safety Ward Hadaway Fastest 50 - Runner up in Medium Sized Business Category
What the judges said “They have good reason to be proud that 50% of their management team started as apprentices, this is an illustration of their commitment to bringing in new talent.” “I love their focus on investment in the future generation and upskilling young people, in particular.”
“Through its blog, social and traditional media it has contributed to discussions on a wide range of subjects including apprenticeships, business ethics, recruitment and training, technological developments within the sector, the Living Wage Foundation, CITB Be Fair, anti-bullying and the effects of health and safety.”
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“The whole of the business bought into their approach from the apprentices, through to board members.”
2015 NEBusiness Awards - Durham & Wearside Apprenticeship Award Winner NEBusiness Awards - NE Regional overall Apprenticeship Award Winner UK Business of the Year - British Chambers Award 2015 - Winner People Development Award - British Chambers Award 2015 - Winner Listed in LSE / Lloyds Bank publication of 1000 Companies to Inspire Britain Chartered Institute of Personnel & Development SME HR Team of the Year - Finalist Ward Hadaway Fastest 50 - Qualified in Large Business Category (my how we have grown!) Constructing Excellence North East SME of the Year 2015 Winner Constructing Excellence National SME of the Year 2015 - Winner
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A POSITIVE IMAGE – ‘CONSIDERATE’ DONE During 2015 we committed the company to a number of initiatives aimed at enhancing the reputation of our sector.
EMPLOYEES HAVE ALSO DONATED THEIR FREE TIME TO SUPPORT AND MAINTAIN BUILDINGS, PARTICULARLY THE HISTORIC BUILDINGS AT MINSTERACRES WHICH REQUIRE CONSTANT ATTENTION.
Building on the successful completion of a vast range of charitable and community initiatives undertaken in the last two years, we have launched a social values committee which meets each month to canvas opinion, explore potential initiatives and plan events in conjunction with stakeholders. Committee members include; finance supervisor, Tarnya Henderson, contracts manager, Darren Ellis, administration apprentice, Jemma Herring and contracts manager, David Wakenshaw. An example of the committee at work is our partnership with Your Homes Newcastle, to assist residents by providing advice, donations of equipment and mentoring to support them into employment. Employees have also donated their free time to support and maintain buildings, particularly the historic buildings at Minsteracres which require constant attention. We have also signed up to the CITB’s Be Fair Framework aimed at helping the construction sector address challenges around fairness, inclusion and respect (FIR). The aim is to deliver cultural change, providing a structure for companies to adopt new practices, training and skills.
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Our company values of honesty, decency and integrity fit seamlessly with the FIR strategy as we continue to build a business that develops its workforce and supports stakeholders. We will seek full engagement, participation and buy-in from all employees, across our supply chain and stakeholders so that everyone is included and aware of our goals. We have pledged our allegiance to the Considerate Constructors scheme. This is a non-profit making, independent initiative, which encourages companies to present an image of competent management, efficiency, awareness of environmental issues and safety within the workforce. The initiative will provide a very positive reminder to us all to continue to maximise our efforts within the following areas: enhancing the appearance of our sites to ensure they always look professional and well managed, being respectful of the community, protecting the environment, safety in the workplace and nurturing a supportive and caring workforce. In line with this, we continue to back initiatives such as The Journal’s Pay Fair campaign, whereby all companies are encouraged to pay their contractors on time and without delay.
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A MODEL COMPANY
We always seek to be innovative and to think outside the box. We want to challenge ourselves so that we can push boundaries that will enhance our growth. We noted that there was a movement towards Building Information Modelling (BIM), but that this did not seem to incorporate the building refurbishment sector, where we felt there was a definite requirement to service our existing and potential client needs.
THE OBJECTIVE IS TO CREATE AND EMBED A BESPOKE BUSINESS INTELLIGENCE PLATFORM THAT CAN BE SHARED AND PRACTISED BY EVERYONE IN THE COMPANY
graduate, Kin Ma, has settled in well and the commitment and investment bodes well for our future. The objective is to create and embed a bespoke business intelligence platform that can be shared and practised by everyone in the company and which will enhance the service we provide our clients. In 2016 to meet the government March deadline, we are looking to develop partnerships with clients to deliver level 2 BIM compliant projects demonstrating comparable cost savings using BIM techniques and efficiencies.
Working in partnership with Teesside University, we developed a business case to progress the commercialisation of this niche area and gained funding from Innovate UK for a Knowledge Transfer Partnership. Our
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KEY PROJECTS
Throughout the year we have worked on a mix of exciting projects with both new and existing clients. Some standout projects include: MINSTERACRES RETREAT CENTRE, COUNTY DURHAM Much needed repairs have taken place plus the installation of a new lift that provides better disabled access. We also installed a front facing elevation lift and generally support the site with any repairs or maintenance requirements.
PALATINE BEDS, YOUR HOMES NEWCASTLE
UPS CONTROL BUILDING, NORTHERN POWERGRID
This £1.5 million contract was on behalf of Your Homes Newcastle (YHN) for Westerhope-based Palatine Beds. The extensive re-roofing project spanned 11,000 square metres and included the installation of solar photovoltaic panels. It is one of the largest single roofing schemes YHN has carried out.
A new UPS battery room was required as a back-up system in case the main depot system ever lost power.
YHN wanted to provide the building with an eco-friendly structure and, as such, work was split into seven zones with four of the zones featuring a new 218 KWp solar photovoltaic system. “Staff at Hodgson Sayers have been fantastic. It was crucial that during the replacement of the roof, production could continue in the factory and the shop continue to operate as normally as possible. The contractors and the staff at Palatine have worked really well together and shown considerable patience and, as a result, no sales have been lost and the project is now complete.” Kevin Scott, Property Services Manager at Your Homes Newcastle
Starting with the disconnection of existing electrics and demolition of bike sheds to create the space for the construction project, through to the excavation and the formation of the new structure, the works proceeded ahead of schedule. A timber roof was fitted with a felt covering with steel beams to reduce the span of the timbers. Furring pieces were then installed to create the correct falls to enable the rain water to flow in the right direction. A felt covering was then installed giving a 15 year guarantee for the roofing system. An additional aco drainage system was installed to capture surface water approaching the new control and diverted to the nearest manhole. This was then resurfaced to match in with the surrounding area. The building is an area of high security and Level Two security doors were fitted from Hodgson Sayer’s own range alongside air conditioning.
THE EXTENSIVE RE-ROOFING PROJECT SPANNED 11,000 SQUARE METRES, INCLUDED THE INSTALLATION OF SOLAR PHOTOVOLTAIC PANELS AND IS ONE OF THE LARGEST SINGLE ROOFING SCHEMES YHN HAS CARRIED OUT.
The construction project was programmed to be undertaken in 10 weeks. Hodgson Sayers delivered it in six.
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Unit 15 Tanfield Lea (North) Industrial Estate Tanfield Lea Stanley Co. Durham DH9 9NX Telephone: 01207 292 020
[email protected] www.hodgson-sayers.co.uk
