Lakehouse turnover ‘boosted by ethical policy’

Contractor Lakehouse has more than doubled its turnover, which its chairman says has been fuelled by CSR and green policies.

Revenues at the Essex-based company, which focuses on social housing improvements, were £104m in the year to 30 September 2010, 51% higher than the previous year.
Pre-tax profit stood at £2.7m, up 35% from 2009, and the firm had £5.6m in cash with no external borrowings.

Chairman Stuart Black said that investment in community work had helped the company win contracts and secure frameworks with housing associations and other clients.
He said: “We still do a huge amount of community engagement and corporate social responsibity. I would contend that this does win contracts. Price isn’t a differential [between companies]. How you engage with the customers and social housing tenants is a big differential.”

He also said environmental work had held up well during the recession. About 20% of Lakehouse’s projects are now focused on improving the green credentials of buildings.
“We focused, early on, in the whole area of environmental sustainability. The area people haven’t cut back on is the green area,” he said.

The latest jump in turnover is even greater than the 36% revenue rise between 2008 and 2009.

But Black warned social housing budget cuts would slow revenue growth between 2010 and 2011. “It will be more like 10% rather than 50%,” he said.

He said that Lakehouse continued to look for acquisitions, although the growth in 2010 was entirely organic.“We are in negotiations with a number of parties,” he said.

At the beginning of 2009 Black predicted Lakehouse would hit a turnover of £200m within three years, but now has said that the company is “slightly behind”
that target and the aim was now to reach £200m in two to three years’ time.

Bonus levels and basic salaries at Lakehouse remained the same during the year, and staff received a 1% pay rise, Black said.