A Surrey-based infrastructure company reports a substantial rise in profit and turnover, attributing success to strategic acquisitions.
- Octavius Infrastructure boosted pre-tax profit from £3.8m to £4.6m following key acquisitions.
- Turnover surged from £215.4m to £276.7m, driven by acquisitions and organic growth.
- Highways specialist R&W Civil Engineering was acquired and integrated into Octavius.
- Rail electrification specialist Navitas Engineering Group was purchased to enhance capabilities.
A Surrey-based infrastructure specialist has witnessed a notable increase in its profit margins and overall turnover, attributing this growth to two pivotal acquisitions in the engineering sector. Octavius Infrastructure celebrated what has been described as a ‘very successful year,’ with pre-tax profits escalating from £3.8 million to £4.6 million. Their annual turnover saw an impressive rise, from £215.4 million to £276.7 million, bolstered significantly by the new acquisitions and continued organic growth.
The first major acquisition involved R&W Civil Engineering, a Southampton-based highways engineering specialist that Octavius purchased out of administration in July 2023. This strategic move brought R&W’s employees under Octavius’s wing and was aimed at complementing the existing capabilities within their highways business. R&W, which had a turnover of £31.8 million according to its latest accounts, was fully integrated into Octavius by April 2024 and rebranded as Octavius Regional Civil Engineering.
Further extending its reach, Octavius acquired the shares of Navitas Engineering Group, a rail-electrification design consultancy, in December of the previous year. Although Navitas was too small to release full accounts, it had net assets worth £1.6 million as of October 2022. Navitas will continue functioning as a standalone entity while significantly enhancing Octavius’s railway-electrification offerings.
In response to these acquisitions, Octavius has expanded their operations across the rail and highways sectors, ensuring a newfound presence throughout England and Wales. Notably, the company secured spots on five Network Rail frameworks and numerous highway projects with local authorities over the last reporting period. Among these was a notable engagement on a £355 million framework with Sheffield City Council, secured in August 2023, which further underpins their expanding portfolio.
The additional workload contributed to a slight increase in adjusted margins, moving from 2.8% to 2.9%, as turnover progressed more rapidly than overhead expenses. It appears that this strategic growth in turnover may facilitate Octavius’s advancement up the CN100 ranking, where it currently holds the 80th position. However, despite these gains, the firm’s cash reserves experienced a downturn, falling from £9.3 million to £7.5 million.
Octavius Infrastructure’s strategic acquisitions have significantly strengthened its position across the UK’s infrastructure sector.
