Octavius ​​Infrastructure’s national expansion is paying off

Octavius ​​became a stand-alone company just three years ago after being spun off from regional contractor Geoffrey Osborne, who went into administration earlier this year.

Since then, turnover has hovered around £200m, but in the last 12 months to March 2024, Octavius ​​has made a step change, with revenue rising from £61m to £277m.

This growth was driven by both organic growth and acquisitions in the core rail and highway markets.

Long-term framework appointments across all four Network Rail regions and awards across several new local authority highways structures have expanded Octavius’ geographic reach and increased its order book to over £1 billion.

This includes secured arrears of £425m for the next 3-year period.

Octavius ​​CEO John Dowsett said: “Our teams have worked incredibly hard to ensure we grow our business wisely – choosing the right type of work where we can build longevity in our client relationships and truly add value to the communities they serve.

“As we enter the next phase of our strategic plan, we will build on these foundations.”

Organic growth was complemented by the successful integration of two strategic acquisitions.

In July 2023, the group acquired selected assets from R&W Civil Engineering, strengthening its existing highways business.

Octavius ​​subsequently acquired Navitas Engineering Group, a specialist rail electrification design consultancy, which significantly enhanced the group’s rail electrification capabilities.

Collectively, these strategic investments broadened the group’s offering and helped deliver an increase in adjusted EBITDA of £2.1m to over £8m, or just under 3% of revenue.

Pre-tax profit increased by £818,000 over the year to £4.7m and included one-off exceptional costs related to the acquisition and integration of R&W Civil Engineering.

Dowsett said: “Our financial statements show that we continue to deliver sustainable growth for our shareholders, underpinned by our continued focus on health and safety and sustainability and an overarching commitment to our customer satisfaction.

“We are confident in the critical role that national infrastructure will play in the new government’s economic policy, and we are working closely with our customers and supply chain partners to ensure that increased decentralization accelerates the delivery of projects to the benefit of local communities.”