Derby-based rail services provider ISS Labour has capitalised on nationwide rail investment to double its turnover in the past two years.
The business manages and supplies a complete delivery service in track renewals, projects, maintenance and minor works within the UK Rail and Light-Rail sectors. As part of the Specialist People Services (SPS) Group, ISS Labour posted revenues of £23m in the financial year to March 2017, a significant increase from the £13.5m for the FY ending March 2015.
This growth in revenues has been enabled by large infrastructure upgrades across the country as part of Network Rail’s £38bn investment into the rail network. These include projects such as Crossrail, the North West Electrification Programme and Patchway Tunnel Improvements in the South West.
One of the underpinning factors that have driven the growth at ISS Labour is the success of the company’s Overhead Line Electrification (OLE) business. In just two years this division has built a reputation as one of the leading suppliers of electrification services to major Network Rail contractors including Babcock, AmeySersa, Carillion and Costain. Since it was launched in 2014, the work has generated revenues of £4m and this is expected to reach £7m by the end of 2017/18.
There have been a number of important recent contract wins, including working directly with Network Rail on country-wide isolation works, supporting the North West Electrification Programme delivering the Preston to Blackpool electrification with VolkerRail, and the Great Western Electrification with Keltbray.
Chris Chidley, chief executive of SPS, said: “Network Rail is now over halfway through delivering its £38bn pipeline of works, the biggest investment seen since the Victorian era. It has represented an exciting period for the industry with a lot of growth opportunities across the UK. Our relationship with Network Rail and the major contractors that supply them have put us in a strong position as we look to continue our expansion.”
In the past 12 months, ISS Labour has further diversified its operations by launching a trades division to supply civil engineering, white and blue collar trades and traffic management roles. In its first year, the division generated revenues of £1.3m following large contract wins with Mouchel and A-Plant. It is expected to double this in its second year of trading.
ISS Labour has also generated revenue from other areas of the business, including its dedicated state-of-the-art training centre in Salford and its lighting division, which has grown to be the largest temporary track lighting and fencing supplier in the UK.
Chris Chidley added: “We are proud of both our financial success and the stellar reputation we have built as a reliable, high-quality supplier to the rail industry. This is reflective of the ambitions of the wider SPS group to constantly strive to be the market leader in our respective fields.
“The focus now is to make sure this continues and investing in our workforce so they have the skills to supply new markets and diversifying our offer to meet new client demands will be key to this.”
For more information on ISS Labour click here.