Novus Celebrates Fifth Birthday with Record Results

  29 AUGUST, 2018
Novus Celebrates Fifth Birthday with Record Results

Novus has marked its fifth birthday by announcing sales of £148.6m in 2017 (2016: £130.3m) following four consecutive years’ growth in revenues and profits.

For the first time, the Stoke-headquartered contractor has been recognised in the annual Sunday Times Top Track 250 league table (206th) for having achieved some of the biggest sales among privately-owned mid-market growth companies in the UK.

The business, which traces its origins to the founding of Seddon more than 120 years ago, was formed in 2013 after the Seddon Group restructured into two independent businesses – Novus and Seddon.

In the first year, Novus achieved sales of £96.9m and recorded profit before tax of £2.3m. In 2017, the business achieved sales of £148.6M and profit before tax of £5.4m.

The company, which employs 1,000 people nationally, is entirely financed by its own cashflow, with no bank debt. In 2016, £1.5m was invested into a new modern headquarters building in Stoke-on-Trent.

Novus Locations

Novus operates from 30 locations across the UK with revenues coming from the refurbishment and maintenance of buildings for housing associations, local authorities, the NHS and the hotel, leisure and grocery retail sectors, as well as construction and new build projects across the Midlands and North West of England.

Chief Executive Neil Hand’s View

Commenting on the figures, Chief Executive Neil Hand said: “We’re delighted to have achieved industry-leading organic growth in every year since we became an independent business. And being recognised as one of the stand-out performers among privately-owned British companies is the icing on our fifth birthday cake. 

“Central to the way we do things is a risk governed, measured and controlled approach to managing our finances. This gives us the flexibility to take long-term decisions that are in the best interests of our employees and clients.

“Part of this includes a commitment to paying our suppliers according to their terms and, critically, on time. We’re very proud of our record and it’s why we have a loyal supply chain built on long-term relationships. 

“Like every business in our sector, cost inflation is a significant headwind. Our procurement team continues to do excellent work in managing our materials supply contracts and we always police our working capital closely. This means that we can maintain our financial independence, allowing us to run our business according to our values.”

Neil continued: “There are signs of a slowdown in construction and we remain mindful of this, even if maintenance continues to be an area where demand is fairly robust. We believe growth is achievable again this year but the strength of our financial position means we don’t need to pursue it at all costs.

“Our focus is on nurturing our existing relationships through a partnership-led approach to working with clients. We find that customers and suppliers return to us because of trust and an understanding that we will work together to solve problems.   

“To ensure we have the right platform in place for another five years of success, we’re making significant investments in the business, particularly in two key areas: people and technology.  Both are crucial to our continuing evolution and ensuring we remain at the leading edge of innovation in the sector. We’re very excited by the potential of enhancing our IT infrastructure to make life easier for our people and clients.

“Regionally, we are also investing in senior talent to join our Scottish business as we anticipate further growth in that market this year.

“We’re proud at how our business has developed as an independent entity under the Novus brand since the Seddon Group restructured. I joined the business as a 15-year old apprentice and 37 years later I lead a fantastic team of people working towards the same vision - being the best contractor to work with and the best contractor to work for.”

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Novus partners with Fortior Homes on £14m contract

NOVUS PARTNERS WITH FORTIOR HOMES ON £14M CONTRACT

We have been chosen to deliver a major housing project in Stoke-on-Trent in a deal worth around £14million.Our Stoke-on-Trent team will be building 85 apartments and 43 houses in partnership with Fortior Homes, the housing company owned by Stoke-on-Trent City Council, on Lichfield Street, Hanley.Work on the site will begin in December with completion set for September 2020. The development will consist of a range of two and three-bedroom houses and one and two-bedroom apartments.Novus were appointed to the contract following a competitive tendering process.Dean Povey, Operations Manager at Novus, said: “As a national contractor that calls Stoke its home, we can’t wait to get started on this exciting project.“The development will provide quality homes for private rent and market sale for the city’s people a stone’s throw from Stoke-on-Trent’s shopping, nightlife and business centre.“As the first project we’ve worked on with Fortior Homes we’re looking forward to building a lasting relationship.”Councillor Randy Conteh, the city council’s cabinet member for housing, communities and safer city, said: “We are committed to providing quality housing for our residents at all stages of life – and to ensuring that different types of accommodation are available to meet everyone’s needs. By providing new-build homes in this location we will be making sure we don’t lose people to other areas who want to live in this kind of accommodation, but are struggling to find somewhere suitable.“There has been a significant amount of investment in the city centre and the infrastructure to support businesses. This is a way of continuing that support by providing the homes for those attracted to the city by the new business environment in a spot readily accessible from the centre.“It is also fantastic news that a local company, Novus, has successfully won the contract for this development. Helping local businesses to grow means more jobs and opportunities for local people. It raises people’s quality of life, and it supports our economy.”Councillor Ann James, leader of the city council and a board member of Fortior Homes, said: “The development of this site will allow us to deliver on our objective for significant investment in new housing.“We aim to provide high quality homes within Stoke-on-Trent, and the Lichfield Street site presents an exciting opportunity for the delivery of a new and aspirational private rental and market sale offer in a key location.”