Page 443 - The Case Lab Book

health & safety and training etc., which all added to costs. This meant Wrekin
Construction was always at a disadvantage when quoting for contracts compared to
other companies which used sub-contractors.

During the decade 2000 to 2010 Wrekin Construction had been through peaks and
troughs as the construction industry began to slow down.

Family Shareholding in Wreking Construction Pre-Unwin

Tom Frain: 10%
Frain children (3, 20% each) 60%
Non family directors 10%

In 2001, the company made a loss of £880,000 but turned the business around in a
dramatic reversal of fortunes.

By June 2003, it unveiled profits of more than £2 million, with turnover up 27 per
cent to smash the £100 million barrier.

But 2004 saw the construction industry falter forcing Wrekin to undertake an
ambitious restructuring strategy under the control of a new managing director,
John Worthington who restructured the business into three new divisions:

Wrekin Construction, which included civil engineering, regeneration and
design and build;
Wrekin Utilities, which involved work with water companies, gas
supplies and telecommunications; and
Wrekin Rail

By September 2006, the Wrekin Group announced it had turned a £1.7 million loss
the previous year into a £1.7 million profit.

Mr Worthington said prospects for the firm were “very encouraging” with a
workload totalling £120 million secured to March 31 2007 against a budget of
£138 million.