Tom Galvin forged a reputation by giving commercial buildings a new lease of life. Now his property maintenance firm, Adrem, has its sights set on a £20m turnover
When Tom Galvin started his career as a quantity surveyor in 1976, the refurbishment industry didn't exist, he says. "There was a lot of new-build and no such thing as high-quality refurbishment." But in the early 1980s when it became big business to "add life" to properties, Galvin sealed his reputation working on refurbishments for high net-worth private clients.
He was asked to become managing director of property maintenance firm Adrem in 1983 and the business made a name for itself in the corporate world working for brewery Samuel Smith on pub refurbishments such as Ye Olde Cheshire Cheese and the Cittie of Yorke in London in the mid-1990s.
Galvin explains how he also spotted a bigger strategic opportunity for the business outside the private sector. "We took a policy decision to set up a public sector division targeting NHS, local authority and government departments. We filled in as many forms [to win contracts] as we could and that was our bread and butter up until last year," he says.
Projects included a £3m external repair and redecoration job for Kensington and Chelsea Tenant Management Organisation, a £1.1m laboratory and business suite refurbishment at Brunel University and a £900,000 birthing pools suite installation at Whittington Hospital, north London.
And then Britain fell into recession, and a raft of austerity measures to tackle the huge budget deficit has hit public sector spending. Galvin says the business first felt the squeeze in early 2009.
"Our margins were coming right down. We did one job, which was a £600,000 fast-track mental health refurb, and I think we made £1,500." Luckily, says Galvin, the company had another string to its bow. "We'd made the very good strategic decision to start a maintenance department. There's no denying it's a massive market, because so few do it well."
The business reported a £5.5m turnover in 2009, which has fallen to an estimated £4m this year because public sector work has dried up. But Galvin has ambitions to reach £15m to £20m turnover by 2012 through further diversification.
"We're looking at setting up dedicated
sub-departments within the maintenance unit that will be substantial in their own right. The electrical and plumbing/heating divisions, for example, are a huge growth area for us," he explains. Once they are firmly established, he has his sights set on social housing maintenance and the "must-have" sectors such as building management systems software, and drainage or fire protection. "I like the look of businesses where you don't have a choice of whether to use them or not. But we won't do it until we're ready."
If one thing defines his style and differentiates his business, it's attention to detail. He says he has instilled a culture at Adrem that strives for perfection. "We have an ultimate test—what would you do if it were your mum's house?" says Galvin.
His 50 employees are taught to use their initiative and leave behind a happy customer. But, most of all, they have to be prepared to work hard and close the job.
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