January 2011 Chairman’s New Year Message 2010 was a challenging and sometimes difficult year. At the company’s staff briefing in October I stated that the Group expected to be profitable for the 2010 calendar year, and this has turned out to be the case. While we performed well in this period it is important to note that a proportion of the cash generated by profits in Kingerlee Limited has been returned to the Group, strengthening and supporting our wider property development and other activities. Recreating the broader asset, investment and trading base of the Group is important. From that base it is possible to continue to provide the significant support afforded to Kingerlee Limited during recent years when despite extremely harsh economic conditions it established itself as a leading player in its area of operations. The Directors would like to thank all those whose great efforts and energy brought about these results. Looking forward to 2011, there are some grounds for optimism. Our order book is reasonable, while the level of enquiries for new projects remains even, but not buoyant. A few of our competitors have fallen by the wayside, and while this is a distressing effect of difficult trading conditions, it can give rise to new opportunities. The recent award of the project to remodel The Old Fire Station in central Oxford valued at £2.3m is an excellent example of such opportunities. These and other tendering opportunities are fiercely contested and when these are converted to live projects they require the implementation of rigorous programs for building effectively, controlling costs, managing risk, enhancing margins and preserving cash. We have strong management teams throughout the Group and with continued commitment from all of us I am confident that we can come through this difficult period a stronger and more efficient business. A happy new year to you and your families. Jonathan Kingerlee Construction Division — New Projects Special Projects Division — New Projects Pembroke College, Brewer Street Development Nuffield Biomedical Research Centre, Oxford Student bedrooms and flats, an auditorium, art gallery, and cafe. Start Date 25th October 2010 Client Pembroke College Contract Value £16.5m Architect Berman Guedes & Stretton Contracts Manager Glynn Biggins Quantity Surveyor James Cole Project Manager Darran Gammon Single storey extension to MRI Unit. Start Date August 2010 Client Nuffield Orthopaedic Trust Contract Value £780k Architect ADP Contracts Manager Mike Clelland Quantity Surveyor John Burbage General Foreman Mick Wells Old Fire Station Redevelopment, Oxford 14-16 Lathbury Road, Oxford Crisis homeless centre, auditorium, art gallery, and cafe. Start Date January 2011 Client Oxford City Council and Crisis Contract Value £2.3m Architect Fieldn Clegg & Bradley Contracts Manager Paul Hardy Quantity Surveyor Jon Halliwell Project Manager Tim Horn Refurbishment of a pair of Victorian houses for student accommodation. Start Date 4th October 2010 Client St Clares College Contract Value £1.1m Architect Counter and King Architects Contracts Manager Mike Clelland Quantity Surveyor John Burbage General Foreman Mick East Old Fire Station Redevelopment Kingerlee has been appointed for the redevelopment of the Old Fire Station in Oxford. Oxford City Council is working with Crisis, the national charity for single homeless people, to redevelop the Old Fire Station, after a bid was awarded funding from the Government’s Places of Change Programme. This is an exciting project for Kingerlee as the company was involved in building the original fire station in 1896 and we are looking forward to reinventing it. The Old Fire Station will be home to a new Crisis Skylight centre providing education, training and employment opportunities for homeless and vulnerably housed people and a social enterprise, Crisis Skylight Café, open to the public. There will also be high quality, flexible spaces for artistic professional development and training, and for community groups to use to offer performance and visual arts events, regular classes and courses for the public. These spaces will accommodate an auditorium, a gallery and retail space, and a creative workspace for artists and designers. The Old Fire Station opened as a working fire station in 1896 and remained the main fire station until 1971. 1 New Finance and Commercial IT System Over the last few months a Project Team has conducted a thorough review of potential suppliers, and of their specialist software. The recommendation of the Project Team was to proceed with the Evision solution from Sage Construction. We have now commenced an implementation programme, which will be in two main phases. The first phase will cover core financial aspects including estimating, payroll, purchase and sales ledgers, subcontractors, as well as CVR reporting. The target go-live date for this phase will be July 2011. The second phase will be targeted for November 2011, and will include web based procedures for requisitions and weekly timesheets, as well as electronic storage of scanned documents within the system. It is anticipated that the business should realise substantial benefits from the implementation of this new system. This will include a great deal of staff time saved by improving and automating business processes; savings in stationery and postage costs; and a much improved ability to analyse business performance in a more timely manner. A great deal of staff commitment will be required throughout the implementation of this project – this will involve analysing the software and examining improvements that can be made to our processes; testing the software to ensure it works in the best way for Kingerlee; and training all end users in how to use the system prior to go-live. I will be responsible for internally managing this Project. If anyone has any questions regarding these changes, or would simply like to find out more, then please do not hesitate to contact me. David Warlow Pembroke Ground Breaking Ceremony After a lengthy tender process, we have finally commenced work on Pembroke College’s Brewer Street Development. The project was won through stiff competition with several national contractors. The planned construction cost of the development is £16.5 million. The new complex will become an integral part of Pembroke College’s main site, with a footbridge to be built over Brewer Street connecting it directly to the College’s Chapel Quad. The development will give a sympathetic ‘facelift’ to the Littlegate Street area and will relieve pressure on local housing by increasing College accommodation for students. The new development includes student accommodation and attractive state-of-the-art facilities, including a 170-seat multi-purpose auditorium, an art gallery, a new café, teaching and function rooms, all set around two new quadrangles. The new buildings, in the heart of Oxford, will use traditional materials in a modern context and will help to redraw the appearance of an undistinguished part of Littlegate The Pembroke Groundbreaking Ceremony, left to right, John Church - Bursar, Jonathan Street, providing a sympathetic facelift to an area of vacant Kingerlee and Giles Henderson - College Master sites and defunct industrial buildings adjacent to Campion Hall. The buildings represent a giant leap forward for one of Oxford’s physically smaller colleges and will increase the University’s overall appeal to applicants looking for high quality and convenient accommodation. When the complex is complete, with 96 new en-suite bedrooms, undergraduates will be able to live in College premises for three years of study, most on the College’s extended main site, while post-graduates will also benefit from more rooms and 6 flats for those with partners. This will relieve the pressure on local private rentals. The Master of Pembroke, Giles Henderson, commented: “After many years of careful planning and wide consultation we are delighted that this new development is about to go ahead. “This is no mere annexe we are building; this is a major extension of our main site which will benefit members of Pembroke and visitors for years to come, in a way which is very rarely possible for a College situated in central Oxford. 2 Kingerlee Trip to Lille An early start on an overcast, rainy day in England took us to St Pancras International in London to board the Eurostar for Lille. After a simple and efficient boarding process, we very smoothly sped under London to the Tunnel. As we emerged from the darkness at Calais we were greeted by glorious sunshine and subject to an even faster journey through the French countryside to the City of Lille. Lille is a big commercial city, the fifth largest in France and birthplace to the wartime leader, General and later President Charles De Gaulle. It derives its name from its former position as an island in a marshy area of the river Deule. The city features a variety of interesting places to see, all radiating out from the historic central square with its majestic old Hotel de Ville (town hall), Vielle Bourse ( old stock exchange) and Opera, surrounded by beautiful 17th and 18th century palaces. It also claims the second most important art gallery in France, the Palais des Beaux-arts and more museums and galleries than are good for you. Despite the station being only 10 minutes walk from the centre, the day involved a lot of walking. Fortunately, plenty of open air restaurants and bars grace the central area providing much needed watering points to take on board the fantastic array of Flanders and Belgium beers on offer and sample the local gastronomic speciality ,Carbonade Flammade ( a beef stew not surprisingly cooked in beer). By late afternoon, along with the rest of Lille, most of us ended up at the Champs de Mars to the north of the city, with its great Vauban fort. The park area which included a small zoo, allowing time to soak up the sunshine, sample a few rides on the annual fun fair or just people watch and recover. The train back was at nine o’clock which everybody eventually reached via a few more pit stops, totally shattered and at least 2 inches shorter. The long and interesting day had left its mark but had been a good one. It's thanks again to Captain Shackleton for doing all the donkey work to arrange the expedition and the weather (at least that’s what he tells me). He has just screamed “sprouts” at me which means it could be Brussels next year or he putting his Christmas shopping list together again. Bob Jackson Completed Projects Oxford High School Bishops Close, Sonning Kendrew Quadrangle, St John’s College, Oxford 3 Five minutes with... ...with Keith Shackleton Current Job Title: Health, Safety and Environment Manager How long have you been working in construction? Since I left school at 16. You can do the maths but it’s a very long time! Why did you go into construction? I followed the family trend. What was your first job in construction? I was an indentured apprentice Quantity Surveyor for a company in Banbury. I stayed there for 12 years. How long have you worked for Kingerlee? Since March 2002. I think I get some more holiday next year! What is the best aspect of your job? It’s training, because it’s a way of developing my colleagues knowledge which builds a positive health and safety culture throughout the business. And what is your least favourite aspect? Having to complete questionnaires on health and safety which have been put together by people who know nothing about the subject! Tell me one of your most memorable moments in health and safety? When I first started at Kingerlee there was a labourer out on site who refused to wear any PPE at all. After about a year of constant hassling his attitude changed and every time I visited site he would proudly show off his PPE. One day I visited site and he had just finished offloading a lorry that had been waiting at the site before anyone had arrived. After he finished he refused to get out of the telehandler cab as he had not had time to put on his PPE before stating work and was horrified that I would see him. Quite a turnaround! Tell us an interesting fact about yourself. I have medals for ballroom dancing! So did you watch Strictly Come Dancing? No! Because it’s not dancing! Staff News New Starters - Oliver Hughes joined Kingerlee in August on a years industrial placement as part of his Construction Management degree at Oxford Brookes University. Leavers — Best wishes to Tom Baldwin and David Murray, both of whom have left Kingerlee for pastures new. Bon voyage to Laurie Crawford who is also leaving us at Christmas to do a round the world trip! Celebratory drinks and a presentation took place in the boardroom on 8th December for Dave Hawkes who recently retired. Pictured left to right, John Bailey, Mary and Dave Hawkes. Congratulations and best wishes for a long and happy retirement. Bon Voyage Laurie! Hello all, as some of you are aware I am moving on to pastures new this Christmas. However this is not a case of career change or progression but to travel the world! Shortly after Christmas (28th December to be precise) my Journey begins with a 13hr flight to Bangkok, Thailand from there on I have roughly 5 months to explore the wonderful lands of Malaysia, Singapore, Australia, New Zealand, and finally a trip across the USA and Canada before finally flying home from The JFK airport, New York on May 11th 2011 (see map below for illustration of route), a day I am very much dreading! I am of course sad to be leaving Kingerlee. I arrived here just over 3 ago years now, starting off in the surveying department before more recently making the long awaited transition over to the estimating department (probably the main reason why I’ve decided to pack my bags!). All joking aside I have thoroughly enjoyed my time with the estimating department and it is a shame to be leaving just as I was beginning getting my teeth into it! I would like to take this opportunity to thank all at Kingerlee who have made my first experience of full time employment an enjoyable one, and I wish you all the very best for the future. Laurie. 4
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