Keltbray has sold off its infrastructure services arm in a bid to refocus on the built-environment sector.
The firm announced today (19 August) that it sold Keltbray Infrastructure Services Ltd (KISL) to private equity firm EMK Capital for an undisclosed amount.
Keltbray said in a statement that the sale would allow it to build “a sharper focus on its well-established position as a leading specialist contractor in the built environment and major civil engineering markets”.
Keltbray chief executive Darren James was named as KISL’s new CEO, and will be replaced at Keltbray by chief operations officer Vince Corrigan. Brendan Kerr will stay on in his role as both sole shareholder and chair of Keltbray.
KISL now has an order book worth more than £1.1bn, which it put down to “strong partnerships with a diverse base of blue-chip infrastructure network operators”, it said.
Keltbray said the sale was in line with its “established strategy for diversified growth”.
“This strategic move is expected to further enhance Keltbray’s reputation by allowing the company to prioritise quality of service and profitability of earnings,” it said. Keltbray will continue to offer specialist engineering services, supported by its design and planning divisions.
KISL will also be renamed as part of the sale agreement.
Last year, Keltbray’s revenue was more or less split between work in the built environment and the infrastructure services sector. Of its £689m turnover, £348m was for work in the built environment, while £341m was from infrastructure services.
Keltbray first entered the infrastructure services sector in 2009 when it acquired Gamble Rail, and then Aspire Rail the following year.
Kerr said: “This decision reflects our commitment to solidifying Keltbray’s position as a leader in the built-environment sector, while continuing to grow our presence in the broader civil engineering market.
“By focusing our resources and expertise, we are confident that Keltbray will continue to deliver exceptional value to our clients and partners.”
In its most recent accounts, published last month, Keltbray slipped to a £1.2m pre-tax loss, partly due to ongoing costs related to its case against the Competition and Markets Authority over the level of its fine for colluding over tender prices between 2013 and 2018.
Revenue was up by more than 30 per cent, however, while the firm’s order book more than doubled in size.
