Andrew Scott’s healthy outlook: project pipeline and margins explained for engineers
Reviewed by Joe Ashwell
First reported on The Construction Index
30 Second Briefing
Andrew Scott Ltd, the 155-year-old Port Talbot-based civil engineering and construction contractor, has lifted its gross margin from 14.4% to 18.3% and pre-tax profit from £5.2m to £7.0m on turnover of £79.6m for the year to 30 June 2025. Despite a slight revenue dip linked to two-stage tendering, the firm forecasts turnover of £120m next year, backed by a £250m secured order book and £15.15m cash after £2.5m capex. Key wins include enabling works for TATA’s new electric arc furnace at Port Talbot, Cardiff City Hall and Porthcawl Pavilion, with direct staff rising from 234 to 271 plus 500 in the local supply chain.
Technical Brief
- Two-stage tendering has front-loaded design, planning and procurement effort, extending pre-construction but de-risking delivery.
- Five-year strategic plan nearing completion, with revenue and profit targets on track to be exceeded through current workload mix.
Our Take
Within our 462-item Infrastructure set, very few pieces centre on Welsh-headquartered contractors, so Andrew Scott Ltd’s £250m secured order book and 5‑year strategy plan mark it out as one of the more visibly growth-oriented regional players in south Wales.
The combination of rising pre-tax profit and cash in bank alongside more than £2.5m of capital expenditure suggests Andrew Scott Ltd is positioning to self-fund larger or more complex works at assets like Cardiff City Hall and Port Talbot, rather than relying heavily on external finance.
Direct employment rising from 234 to 271, plus 500 people in the local supply chain, indicates that project wins in hubs such as Port Talbot and the Lower Swansea Valley are already translating into labour-market pull, which local authorities and industrial clients (including TATA-linked operations in Port Talbot) can leverage when planning future frameworks.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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