Keltbray’s sale of its infrastructure business comes after several years of turnover growth but not a lot of profit to show for it.
Since the start of the decade Keltbray has grown its turnover by 60%, reaching £689m in the year to October 2023, but in the past four financial years it has made a pre-tax profit in only one – FY 2022 – and over that period has made an aggregate pre-tax loss of £11.6m.
Sole shareholder Brendan Kerr decided it was time to rethink the strategy that had previously seen Keltbray eyeing tier one status.
Darren James, until now chief executive of Keltbray, is leaving with the divested business to become chief executive of KISL.
Chief operating officer Vince Corrigan takes over as Keltbray chief executive.
As part of the agreement, KISL will in due course be renamed and branded to remove the ‘Keltbray’ reference, reflecting its new ownership and strategic direction.
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Keltbray’s diversification into infrastructure services began in 2009 with the acquisition of Gamble Rail, followed by Aspire Rail in 2010, and the establishment of its energy networks business in 2013.
The official sale announcement said that shedding Infrastructure Services – which turned over £378m last year – would enable Keltbray to focus on its more established specialisms, including demolition and enabling works, that form its Built Environment division.
Kelbtray Built Environment Ltd turned over £312m last year.
Brendan Kerr said: “This decision aligns with Keltbray’s long-term strategy to hone our focus on key business areas, allowing us to reinforce our commitment to excellence in the specialist engineering sector. Now is the right time for KISL to transition to a new owner and start a new chapter in its successful growth story.”
Darren James said: “On behalf of the entire KISL business, I’d like to place on record our sincere thanks for the support we have received from Brendan and the Keltbray Group over the last 15 years which has been instrumental. Together with the management team, I am very excited to partner with our new owner EMK Capital and deliver on KISL’s full potential.”
