sbu business plan

S & B Utilities Ltd:

S & B Utilities Ltd Business Plan 2010 - 2014

Company Profile:

Company Profile S&B Utilities Limited are a civil engineering , mechanical & electrical and building construction company based in Scotton, near Harrogate , North Yorkshire. The business o perat es throughout the North of England for a variety of utility and construction companies S&B Utilities has been operational since 2002 and t he company has very broad aims for the future with a recorded turnover of £3.6m in 2009 . In this presentation we will summarize S&B Utilities business plan by looking at the following key areas :- The team, Current and future objectives, Business concept, Competition, Goals and objectives, Financial plan, Resource requirements, Risks etc.

Business Plan Summary:

Business Plan Summary 1. To maintain and consolidate the turnover 1.1 To review the method of tendering and increase the client base with more framework type contracts. 1.2 To broaden the companies scope of works 1.3 To retain the current client base. 1.4 To improve client relationship. . 1.5 To communicate company requirements to employees clearly setting out targets which need to be achieved. 2. To maintain a fully qualified workforce that meets requirements of the business 2.1 To enact and monitor the company training plan according to agreed time scales. 2.2 To design and implement a system of employee appraisals for all job roles. 2.3 To identify a training budget and maximize use of CITB Grants. 3. To expand into new markets in a planned manner beyond core business activity in the year 2010-2014 3 .1 To review the fabrication shop equipment to allow the department to expand giving scope for new business opportunities. 3.2 To purchase a new wagon/ hiab as well as our own small plant allowing the company to undertake jobs more efficiently and effectively therefore making the company more marketable. 3.3 To investigate new markets outside the regulated water industry.

Business Plan Summary:

Business Plan Summary 4 . To continually develop the use of technology allowing the company to expand into e-commerce markets 4 .1 To review client requirements on future billing and tendering, enabling the company to keep up with current trends in I.T 4 .2 To review employee requirements with I.T Training making sure that all managers are computer literate in their required areas. To retain our status as a regional market leader in a specialist market field whilst maintaining and developing a professional image and reputation 5.1 To continually review innovative ideas in construction. 5.2 To continue to produce quality work to satisfy customer needs. Communicate feedback from clients to employees to show them their perception of the company and its workforce. 5.3 To use our existing IT equipment to monitor projects by preparing cost analysis and variances. 5.4 To promote the company via the website and by producing a company brochure and assessing perception reports issued to clients.

Company Vision:

Company Vision The Company Vision is based around four general themes – Service, Compliance, Value and People. The company aims to provide a service to our clients which satisfies their needs and requirements. Introduce 1 new client per year to the business Undertake a client satisfaction survey with all key customers, taking appropriate action if any dissatisfaction is apparent. The company aims to ensure compliance with all laws, directives and regulations which are applicable to the business. Maintaine ISO 9001 and ISO 14001 accreditations Zero environmental incidents Reduce the business carbon footprint Conserve energy usage Recycle and re-use >75% of waste materials The company aims to protect and enhance the financial value generated by the business. Maintain profits Expand the business annual turnover by 10% annually Improve gross profit percentages annually

Company Vision (cont.) :

Company Vision (cont.) The company aims to ensure that safe and appropriate working conditions are provided for the workforce. Achieve ISO 18001 Accreditation Zero accidents Share and learn Promote a healthy workplace To maintain a trained and competent workforce

The Market Place:

The Market Place S&B Utilities Ltd currently operate in the civil engineering, building construction, building maintenance and Water Services markets within the North of England. The company at present is developing the electrical and mechanical and civil engineering departments with key appointments required to satisfy the growing market trend. The building and maintenance departments are very competitive areas that will require a detailed approach to satisfy client needs with the potential to be rewarding to our business should the sale of client assets be continued.

PEST Analysis:

PEST Analysis (Political, Environmental, Social,Technological) S&B Utilities Ltd operates in a market of Civil Engineering, Building Maintenance and Electrical & Plumbing. All three markets are very different, however adaptations in the market can affect and influence them all.

Political issues:

Political issues Change Of Government – Changes in Government spending would have an effect on the market and therefore to reduce vulnerability the company needs to secure a further maintenance contract with another company away from the water industry domain. Working Time Directives – To ensure that there is sufficient skilled workforce in order to meet the demand of contract operations.

Economical:

Economical Fuel Costs – Due to the nature of the companies business any fluctuation in fuel costs will have a major influence on the business. The company currently has 40 vehicles on the road which travel all around the Yorkshire, Humberside and Lincolnshire regions. This means that travel costs impact upon all jobs and it is important to keep an up to date record on all expenditure. A vehicle schedule is updated on a weekly basis which analyses all vehicle mileage and fuel costs. This schedule is used to charge out mileage costs on jobs allowing the company to recover a percentage of its fuel overheads. Fuel is also used to power site plant and equipment, therefore if fuel costs were to spiral it may be worth looking at alternative forms of fuel such as gas and electricity. Monetary Change – As there are no long term plans for buying systems any UK monetary change in the market should not significantly affect the company. Interest Rates – Fixed interest rates means that any fluctuation will not affect the company directly. Though it is essential to maintain knowledge of banking rates, 2010 will be the year to look at refinancing the business through our existing lender or with other parties Insurance Costs – Improving operative knowledge regarding costs and detailing the importance of reducing accidents and looking after the company’s plant, machinery and transport will assist the business in reducing or maintaining existing insurance premiums Wage Increases – To help control wage costs, the company will start to look at subcontract labour. There could be cost benefits to the company by subcontracting labour. However it is important to make sure that the workforce are fully trained and will work to the deadlines of the job in an efficient and effective manor. Trade wage increases are detailed by BATJIC and structured over 3 year periods, this period is used to slowly introduce to employees their full wage benefit

Social issues:

Social issues Skills shortages – Due to the markets that the company operates in, it is important to have a highly trained workforce when tendering for new work. All employees should be trained in all areas of their job, therefore maintaining a training plan is a priority for the company. In order to maintain a quality workforce for the future, apprentices are taken on allowing the employee to train in his/her chosen field. This benefits the company as well, as the new employee will learn their trade the “company’s own way”. Unsociable Hours – Working time directives means that employees are only allowed to work a maximum number of hours a week. This could affect the company if a job needs to be completed and therefore employees would have to work extra hours. In order for the company to overcome these problems, improved planning of the job and more effective communication could mean that a job is completed within the given deadlines set by the contractor. By improved communication the company could also reduce labour costs. Attitude to Working Environment – S & B Utilities needs to ensure that they provide good working conditions on all jobs as well as a safe working environment at all times. Safety equipment should be readily accessible when required and all employees should make sure that they are equipped with the correct clothing for their job.

Technological advance:

Technological advance New Materials – Introduction of new materials by the industry may reduce the need for a certain amount of skilled labour. However if new materials were to be introduced, training would be required for employees on the handling and usage of the new product. Improved Machinery – The introduction of new machinery would mean training for all employees involved in its use. As the company has an effective training plan in place, all employees would be trained prior to the need to use the new technology. This would make the company more marketable when tendering for new work. IT/ Internet/ Computer Literacy – All office staff are involved in an ongoing programme to learn all computer requirements of their job. The introduction of new systems would instigate the company to train the relevant employee, therefore making sure that the company does not suffer through a lack of technological knowledge, By monitoring connections with industry associations as well as observing the training plan the company is able to remain at the forefront of new technology

The Companies Strengths:

The Companies Strengths Management Knowledge – All management are fully trained in their field which enables the company to distribute work to the relevant managers with the assurance that the job will be achieved both efficiently and effectively to meet the required deadlines and objectives of the client. Committed to Clients – The company makes sure that they are able to meet all the requirements of the job before they go into tendering for the work so that when a job has been successfully won, there are no questions to be answered. A scope is completed to the objectives set out by the client as well as being undertaken in a professional manor. S&B Utilities are a reliable and flexible company who are always committed to carrying out client requirements to the best of their ability. Good Working Relationship with Suppliers – An effective working knowledge of our company requirements as well as the supplier requirements is a key part of any job. Supplier relations enables the company to purchase materials and plant as and when required for a job with the knowledge that accounts will be settled on time. Computerization of the Business – The processing of all jobs is by way of computerized systems. All job data is input centrally, allowing management to produce weekly update reports on schemes which clearly shows their progress as well as any problems, which may be occurring. These reports are used by managers as an early warning system by identifying problems relating to labour costs and invoiced totals. These reports are also a useful tool when pricing for tenders of similar work

The Companies Weaknesses:

The Companies Weaknesses Communication between Departments – The introduction of regular monthly meetings will mean that there will be improved communication between departments. These monthly meetings will also help reduce time wasted by “fire fighting”. Resistance to Change – The maintenance department requires a special type of individual to carry out daily tasks. These individuals require skills in several trades to allow the company to benefit from quicker task completion times. Unfortunately the individuals at the company are nearing the latter part of their work life and some find it difficult to adapt to computerized and modern technology. Questionnaires will provide the company with more information about individual employees, allowing plans to be developed to assist employees to adapt to modern methods. Staff Attitudes/Ageing Workforce – Implementing a labour succession plan using apprentices will reduce the risk of the business having a shortfall in key skills in the future Responsibilities of Operatives – The questionnaire along with half-yearly appraisals will be utilized to identify employees who will relish the prospect of additional responsibility and also those who require additional training to allow them to achieve their goals within the company. Act on Issues – Issues raised by employees will now be brought to the attention of the relevant manager who in turn will discuss the issues at the scheduled monthly meetings. The responses will be designated to an individual to follow through to a satisfactory conclusion

The Companies Opportunities:

The Companies Opportunities Repeat Business – By completing work for clients in a professional and skilled manner clients are more than likely to select the company to carry out other jobs in the future. This will help maintain the current business portfolio as well as putting the company forward for new business through word of mouth in the market place. More Effective Planning – This will be achieved simply by holding regular meetings allowing management to communicate with each other in an effective manor. By also involving employees the company is able to obtain feedback on current jobs, which will help management when planning for the future. If employees are not to be present at the meeting questionnaires will be sent out for all employees to complete which will allow management to receive direct feedback on individual jobs. Accelerate Change – The need to employ key individuals from outside the company has become apparent to allow the company to progress in the construction industry, this will bring added benefits to SB Utilities by utilizing the knowledge and efficiency of our competitors employees.

The Companies Threats:

The Companies Threats Smaller Businesses – Companies with lower overheads and cheaper labour could threaten the turnover of the business. By looking to form working partnerships with clients we feel the benefits of fixed rates, service back-up and consistent quality will allow us to progress. The ability of SB Utilities Ltd. to provide a full trade service under one banner has been proved to produce efficiencies for the client Complacency – The threat of employees falling into a ‘comfort zone’ would have an effect on the business. The computer system is programmed to identify individuals and tasks that are under achieving. Appraisals of the employees to determine wage increases and performance will be a valuable tool to combat complacency Not Complying with Business Plan – The business plan efficiency depends on the whole company pulling together in the same direction. As in any chain the plan can only be as strong as the weakest link. Promoting the plan to the employees with their own ideas and ownership contributes to the success of the planning process. Each employee will be responsible for maintaining the aims of the company by achieving their individual goals, which will be developed through questionnaires and appraisals. Downturn in Workload – Maintain the existing client base with a view to adding at least one new client per year, a structured approach to sourcing new clients is required to maintain the need to strengthen different areas of the business. We will look outside the regulated water industry for additional clients. 2010- Source new client for the building maintenance department 2011- Source new client for Water Services contract 2012- Source additional client for civil engineering projects 2013- Look to expand the metalwork fabrication sales 2014- Source new client for Building Construction

Products/ Services:

Products/ Services The development of the mechanical/ electrical and plumbing department is seen as one of the first areas to promote. The market is very competitive within the region so the ability to provide NECIEC (electricians), MEICA (mechanical fitters) and Gas Safe (plumbers) has a huge potential for client satisfaction and assurances. Ever changing legislation and local council requirements for rented accommodation emphasize the need to pursue the market In 2008, S&B Utilities Ltd successfully tendered for a 3-year framework contract with Yorkshire Water Services for the refurbishment of Sewage Pumping Stations within Yorkshire. The development of the design department and of key personnel, permits the company to offer the only turnkey service to the client

Customers:

Customers Within the civil engineering department approximately 90% of the work is tendered with 10% referrals, the aim over the next five years is to increase the referrals by approximately 300% to reduce the demand on successful tendering. This can be achieved by successful promotion of the business within the industry to existing clients. The building maintenance department is currently carrying out works for existing clients through a planned system. The ability to supply all trades personnel from one company proves to be key in securing the contract awards. Recent projects have been completed with cost savings for the client through our knowledge of the tasks and our involvement at design We are fully aware of the need to remain competitive and this will be achieved with regular contact with the client during on-going projects and feed back after completion of schemes

Competitors:

Competitors The markets that the company operates in are highly competitive, with all SBU competitors providing similar services and products to the client. The need to stay ahead of the field in terms of technology, product specification, quality, safety and service is paramount in all aspects of the company operations to ensure the continued longevity of the business. This will be achieved by implementation of the business plan, maintaining affiliation with industry associations and continuous monitoring of existing company procedures. Supplier and sub-contract questionnaires are a valuable tool in forging a working relationship to benefit the client, though schemes undertaken can be referral or repetitive, the need to provide quality products and services at a fair price from our suppliers and sub-contractors is essential. Management and monitoring of sub-contractors is key to SBU remaining at the forefront of the clients perception.

The Business Goals & Targets(1):

The Business Goals & Targets(1) Customers We will: Obtain one new client for the business each year; Retain framework status with YWS and contract staus with C2C & ETM; Deliver overall programmed expenditure; Deliver all required Quality Outputs; Improve response and completion times on projects; Adress defects and customer complaints promptly; Improve the promptness of tender submission and the tender success rate.

The Business Goals & Targets (2):

The Business Goals & Targets (2) Regulators We will: Comply with all covenants; Reduce reportable accidents to Zero; Improve our accident frequency rate to industry standards; Obtain ISO 18001 registration; Maintain ISO 9001 & 14001 registration; Maintain a regular programme of internal audits of the management system and deal promptly with all non-conformances; Maintain our plant and vehicles effectively, ensuring appropriate servicing and testing is carried out at correct intervals; Set examples in all aspects of H&S, Quality and Environmental leadership.

The Business Goals & Objectives (3):

The Business Goals & Objectives (3) Workforce We will: Improve employee satisfaction, undertaking regular surveys to measure; Complete the Training Plan; Promote social activities for company employees; Hold regular staff meetings.

The Business Goals and Objectives (4):

The Business Goals and Objectives (4) Value We will: Increase departmental sales by 10% annually; Increase gross profitability by 10% annually; Reduce supply chain costs and in particular plant hire charges.

The Business Goals & Objectives – Monitoring (1) Customers:

The Business Goals & Objectives – Monitoring (1) Customers Objective Responsibility 2010-11 2011-12 2012-13 2013-14 2014-15 Obtain new Client. DS, RS. Retain YWS framework KS,DS,RS. WG, GS,RL. Retain C2C contract KS,DS,RS. LS. Retain ETM Contract DS,RS. WG,GS. Deliver programme expenditure RS. WG,GS,LS,RL. Deliver Quality Outputs RS. WG,GS,LS,RL. Response & Completion times RS. WG,GS,LS,RL. Defects & Customer complaints DS,RS. WG,GS,LS,RL. Promptness of tenders RS. MC. Tender success rate RS. MC.

The Business Goals & Objectives – Monitoring (2) Regulators:

The Business Goals & Objectives – Monitoring (2) Regulators Objective Responsibility 2010-11 2011-12 2012-13 2013-14 2014-15 Compliance with Coventants All Directors Reportable Accidents - Zero DS,RS. WG,GS,LS,RL,SW. Reduce Accident Frequency Rate DS,RS. WG,GS,LS,RL,SW. Obtain ISO 18001 KB. KH,BC. Maintain ISO 9001, 14001 KB. KH,BC. Programme of Internal Audits KB. KH, BC. Prompt closure of Non-conformances KB. KH, BC. Effective maintance of Plant & vehicles KS. TR, JT. Example in all aspects of H&S, Quality & Environmental All Directors All Senior Managers

The Business Goals & Objectives – Monitoring (3) Workforce:

The Business Goals & Objectives – Monitoring (3) Workforce Objective Responsibility 2010-11 2011-12 2012-13 2013-14 2014-15 Improve Employee Satisfaction All Directors Undertake Employee Surveys KB. TR. Complete Training Plan All Directors. All Senior Managers Organise Social Activities All Directors Hold Regular Staff Meetings All Directors

The Business Goals & Objectives – Monitoring (4) Value:

The Business Goals & Objectives – Monitoring (4) Value Objective Responsibility 2010-11 2011-12 2012-13 2013-14 2014-15 Increase Departmental Sales All Directors All Department Heads Increase Gross Profitability All Directors Reduce Supply Chain Costs KS, DS,RS,KB . Reduce Plant Hire Charges KS, DS, RS. TR, JT

The Team:

The Team Keith Swales- Managing Director Darren Swales- Senior Contracts Director Karen Blackwood- Finance Director Rob Swan- Contracts Director Robert Lang- Building Maintenance Contracts Manager Graeme Stokes – Contracts Manager William Griffin- Civil Engineering Contracts Manager Lee Swales- Water Services Contracts Manager Tracie Rose – Office Manager Vicky Bagge – Finance Manager

The Business Goals & Targets:

The Business Goals & Targets Key Actions Key persons Monitor pricing of schemes, standardize set items review tenders MC/ RS Monitor fuel costs, mobile phone use and reduce plant hire RKS/ VA Issue employee questionnaire and record findings, newsletter TR Obtain one new client to the business DS/RS Update Achilles database TR 6. Organize the company brochure, media promotion TR 7. Communicate the company requirements to all employees via meetings RS/GS/LS/JT/WG 8. Improve client relationship, understand client requirements RKS/ DPS/ RS/ WG/ JT/ LS/ GS 9. Improve client relationships RKS/ DPS/ RS / WG/ JT/ LS/ GS 10. Utilize ETM-JV and monitor existing training requirements DPS/ KH 11. Set out dates for monthly meetings in advance GS/ WG/ JT/ LS 12. Reduce on-site accidents by 5 0 % annually To be actioned by all employees Reduce external hire costs by 10% annually To be actioned by all employees Appoint new company director to strengthen to business DS/KS/KB Appoint new foreman for BM to strengthen the department RS/KS/KB/DS Appoint new office manager to strengthen the business DS/KS/KB Obtain ISO 18001 Accreditation. KH/KB Maintain ISO9001 and ISO14001 accreditations KH/KB Development of the yard area to provide secure storage facilities KS

The Business Goals & Targets:

The Business Goals & Target s THE BUSINESS GOALS AND TARGETS Target date Improve departmental sales by 10% (Value) 2012 Improve gross profitability by 10% (Value) 2014 Improve employee satisfaction (People) 2012 Obtain one new client to the business (Service) 2010 Promote the company image and services (Service) 2011 Maintain existing turnover (Value) 2010 Retain framework status (Service) 2013 Improve client relationship (Service) 2014 Completion of the training plan (People) 2014 Implement regular staff meetings (People) 2010 Reduce Accidents on Site by 50% annually (People/Compliance) 2012 Reduce Outside Hire Costs by 10% annually (Value) 2014 Appoint new company director to strengthen to business (People) 2010 Appoint new foreman for BM to strengthen the department (People) 2010 Appoint new office manager to strengthen the business (People) 2010 Obtaining ISO 18001 accreditation. (Compliance/People) 2011 Maintain the ISO 9001 and ISO 14001 accreditations (with zero corrective actions) 2010 (Compliance) 18. Development of the yard area to provide secure storage facilities (Service) 2010 These goals and targets will be subject to regular monitoring through the development of appropriate KPI’s and measures. Each of the above goals and targets is allocated to one (or more) of the Business Plan themes.