Successful Year For Sisk
John Sisk & Son (Sisk), the innovative, engineering and construction company with extensive operations across Ireland, the United Kingdom and mainland Europe, has reported a strong outcome for its 2017 financial year in both profitability and business development.
Although turnover decreased by 5% to €792.2 million for the year ended 31 December 2017, pre-tax profit increased by 73% to €24.7 million that incorporates an exceptional item of €11.4 million relating to an associate company reaching a settlement in relation to historic construction contracts.
The results reflect a very robust performance in Ireland. No loss-making projects were reported by the business in 2017.
Stephen Bowcott, CEO of John Sisk & Son, commented: “Our engineering and construction business enjoyed a successful year in 2017, where performance reflected strong levels of activity, particularly in areas such as data and technology, life sciences and biopharma, advanced manufacturing, commercial, retail, residential and civil engineering.”
He continued: “The focus we brought to the business in 2017 was around value generation – for our customers, our people and our shareholders. This meant a shift from being a revenue led business to being a profit led business working with key partners to generate greater productivity in the industry leading to better outcomes for our customers. The results of this approach are clear across the business where I’m happy to report that Sisk recorded no loss-making projects in 2017 for the second consecutive year. Our focus on value generation, our commitment to safety and the environment and our ongoing investment in our people has paid dividends in 2017 and positions the business on a strong platform for future sustainable growth.”
Operations Review
Building on the strengthening performance of the business over the past number of years, 2017 was another year where Sisk completed and were appointed to, key landmark projects.
The €70 million redevelopment of Pairc Ui Chaoimh was successfully handed over to the GAA in 2017 and earned Sisk two honours at the Irish Construction Excellence Awards. Sisk’s civil engineering business completed several of Ireland’s substantial projects including the Cross-City Luas extension in Dublin and the N17 Gort to Tuam Motorway.
The business was selected by Center Parcs to build 470 lodges and 30 apartments at its Longford Forest Resort in addition to the holiday village’s central building that includes swimming pool, bars, restaurants, and retail outlets.
Sisk continued to successfully deliver three strategically important Data Centres in Dublin marking its tenth year of project delivery in this sector.
Other significant contracts underway include the redevelopment of the Curragh Racecourse, which was secured using innovative construction methods where the business developed the first BIM Virtual Reality model in Ireland, and also the landmark Capital Dock mixed use development for Kennedy Wilson on Dublin’s South quays. The business also recently turned the sod on the major Grangegorman educational campus for the Dublin Institute of Technology and is delivering a major expansion of the Bons Secours Hospital in Cork.
Sisk Living, which was established in 2016 up as a specialist Housing delivery division of Sisk to deliver good quality, energy efficient houses quickly, and based on volume delivery, was successfully appointed to two affordable housing contracts, the first of which was delivered in Dun Laoghaire in May 2018, with the second for South Dublin County Council due to be delivered over summer this year. The business has proven that builders on a design, build and finance basis can deliver homes at a far lower cost than developers who take the risk of speculatively purchasing land up front based on securing large profit margins.
Return to Profitability in the UK
Following a number of challenging years impacting the entire industry in the United Kingdom, Sisk successfully returned its business to profitability in this market and delivered key projects during the year including the major redevelopment and restoration of London’s iconic Royal Academy of Arts. It was also successful in securing other landmark projects such as an £88 million hanger for Boeing at Gatwick and the £190 million fourth phase of Great Ormond Street’s redevelopment programme.
Sisk, using its experience of building the National Conference Centre in Dublin, is also the primary contractor on the International Convention Centre Wales in Newport and continues to be the primary partner of Quintain in their major redevelopment at Wembley Park as the company builds out the largest build to rent programme in the UK. At present Sisk is delivering over 3,000 residential units in the UK market, a core skillset which can be used to solve the housing issues faced at present in Ireland.
The Irish based business has also expanded its footprint into European business this year working in programme management and project delivery for some of its key long-term customers across the Nordics, Benelux, Austria, Germany and Switzerland. These projects are a core part of Sisk’s strategy and are seen as a particular area of growth over the coming years.
“We continue to be selective about the projects we undertake. Sisk has the financial platform and skilled people to compete for business across key sectors based on high quality, timely, cost efficient and safe project delivery,” said Stephen Bowcott.
