Concrete firm hikes profits

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Surrey concrete contractor Foundation Developments drove profits up a quarter last year thanks to solid workloads in the groundwork and formwork markets.

The company, which is carrying out a number of deals on the site of the 2012 Olympic Games in east London, saw pre-tax profits hit £1.8 million in 2007 on revenues which edged up eight per cent to £42.6 million.

In a statement accompanying its financial results, the company said it had a strong order book for 2008 and added: "The market remains buoyant with sufficient tender opportunities necessary to meet projections."

But in its statement, Foundation, which carries out its work in London and the South-east, said it was facing stiff competition from rivals who were looking at jobs just for revenue.

It said: "The market for building and civil engineering contractors remains very competitive, tenders have to be carefully priced due to turnover driven companies quoting for the same work."

The company's 38 employees were paid well last year with each picking up an average of £71,500 – up from the £60,000 the year before.

The salary of the highest paid director, who is not named, tripled to £561,000.