Scaffolding has suffered along with the rest of construction during the difficult economic conditions of the past four years.
The size of the market, as reflected by the latest turnovers of the 10 biggest scaffolding contractors, was down around 4% - though collectively they were back in the black to the tune of 拢11.9m, with only two firms posting pre-tax losses.
Some scaffolding contractors have adapted to the economic circumstances better than others.
As one top 10 contractor observed: 鈥淭he bigger players have found it much tougher during the downturn; the smaller, family-owned businesses have found it easier to adjust to the current economic climate, where the overall size of the cake is smaller, and the margins tighter.鈥�
| Rank by turnover | Rank by profit | Company | Latest turnover (拢m) | Previous turnover (拢m) | Latest pre-tax profit (拢m) | Previous pre-tax profit (拢m) | Latest margin (%) | Previous margin (%) | Latest reporting period |
| 1 | 2 | Cape Industrial Services | 284.3 | 328.9 | 27.9 | -43.9 | 9.8 | -13.3 | 31/12/10 |
| 2 | 4 | Interserve Industrial Services | 135.7 | 133.6 | 0.4 | 0.1 | 0.3 | 0.1 | 31/12/11 |
| 3 | 6 | Deborah Services | 81.2 | 70.0 | 2.7 | 0.1 | 3.3 | 0.1 | 30/04/11 |
| 4 | 3 | Harsco Infrastructure | 107.6 | 122.4 | -26.9 | -10.6 | -25.0 | -8.7 | 31/12/10 |
| 5 | 1 | Pyeroy | 68.1 | 59.5 | 2.8 | 3.5 | 4.1 | 5.9 | 31/12/11 |
| 6 | 8 | Xervon Palmers | 32.5 | 31.3 | -3.3 | -2.4 | -10.2 | -7.7 | 30/09/10 |
| 7 | 7 | Lyndon | 29.9 | 30.4 | 0.5 | 1.2 | 1.7 | 3.9 | 31/03/11 |
| 8 | 9 | Denholm | 20.0 | 15.3 | 4.1 | 1.2 | 20.5 | 7.8 | 31/12/10 |
| 9 | 5 | Trad | 14.8 | 14.5 | 3.5 | 1.0 | 23.6 | 6.9 | 30/11/10 |
| 10 | 10 | Brogan | 10.8 | 10.9 | 0.2 | -0.1 | 1.9 | -0.9 | 31/12/11 |
| 听 | 听 | Totals | 784.9 | 816.8 | 11.9 | -49.9 | 3.0 | -0.6 | 听 |
Two of the three biggest scaffolding contractors have found the climate very harsh.
Cape Industrial Services, which operates largely in the offshore and industrial sectors, experienced a 拢44.6m drop in turnover to 拢284.3m. However, it has turned around alarming losses of 拢43.9m in 2009, and posted a pre-tax profit of 拢27.9m for 2010.
Harsco Infrastructurehas been less successful in dealing with its well-publicised problems. Turnover dropped again, but more alarming was the increase in pre-tax loss from 拢10.6m in 2009 to 拢26.9m for 2010. This despite a huge cost-cutting programme.
The firm said the 鈥渆conomic climate adversely affected results鈥� leading to a 鈥渓arge scale restructuring in fourth quarter of 2010 to permanently reduce the cost base鈥�.
Harsco also sold its event and accommodation business to modular buildings supplier Wernick.
Meanwhile Palmers, historically one of the sector's biggest names, also has its problems. The contractor's latest accounts from September 2010, when it traded as ThyssenKrupp Palmers, show a 拢3.3m loss on a turnover of 拢32.5m. In December 2011, the business was acquired by waste management company Remondis, and is now known as Xervon Palmers. It will be interesting to see if the new owners can turn things around.
At Interserve Industrial Services the outlook is better, with a marginal increase in turnover to 拢135.7m, but another wafer-thin margin of just 0.3%. However, the firm believes the 鈥渋ndustrial support services market remains attractive鈥�.
Deborah Services, part of the AIM-listed Siteserve Group, enjoyed the biggest growth of any top 10 scaffolder, with revenue climbing 15% to 拢81.2m and profit rising to a healthy 拢2.7m.
Turnover also grew significantly at Pyeroy, up from 拢59.5m to 拢68.1m, though pre-tax profit was down marginally. The firm, which specialises in the rail, marine, process, energy, and utility sectors, was upbeat about prospects for 2012, saying 鈥渟pending in our target markets is comparable to 2011鈥�.
Lyndon experienced a slight dip in turnover to 拢29.9m, with profit also falling. The firm said the 鈥渇uture state of the market remains uncertain鈥�.
Denhom, although its turnover grew almost a third, and profit jumped 250%, said a 鈥渄ifficult 2011 was anticipated鈥�. Similarly Trad, which grew profit 350% on marginally better revenue, said the economic climate was 鈥渃hallenging鈥�.
Brogan, which posted a small pre-tax loss in 2010, was narrowly back in the black on a slightly increased turnover.
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