CARRON GROUP: COMPREHENSIVE ECONOMIC AND SOCIAL DEVELOPMENT
Over half a century of activity. A founder who was the epitome of a self-made man: Cav. Angelo Carron.
A management team who carries on the tradition in the name of innovation: the founder’s children, Diego, Arianna, Paola, Marta and Barbara Carron.
Today, the Group is made up of Carron S.p.A. and Carron Bau with headquarters in Alto Adige and operates throughout Italy, applying a multidisciplinary approach to complete complex and exclusive projects.
Carron was founded by Cav. Angelo Carron, “the Champion of Challenges”
The history of Carron Group dates back over fifty years, based on the solid foundations laid by Cav. Angelo Carron back in 1963, when the historical headquarters were first opened in San Zenone degli Ezzelini, Treviso, Italy.
The challenge began in 1963, inside a Fiat 500 with a sticker reading: "Impresa edile Angelo Carron - San Zenone degli Ezzelini”.
Angelo Carron was nicknamed the “Champion of Challenges” thanks to his entrepreneurial spirit which, during the 80s, led him to diversify his business, from civil construction to infrastructure, at the same time as continuing to restore historic buildings. As well as playing a key role in the market, Carron also pursued social and sporting initiatives by managing the “Giorgione Calcio” team in the C2 football league, holding important stakes in the Treviso and Padua football teams and supporting various competitive sporting activities. Carron Group continues its commitment in this field today.
The company continued to expand its horizons and, during the second half of the 90s, it arrived in Alto Adige, signing a contract worth 45 billion Lira with the provincial authorities for the restoration of Hotel Savoy in Merano and for the restoration of the European Academy. Carron S.p.A. became a market leader, winning the trust of the president of the Cassamarca Dino De Poli Foundation which, in 1999, entrusted the company to build the new university in Treviso, which it completed in record time in October 2000.
From one generation to the next: continuing the tradition of development, characterised by innovation.
In 2001, Angelo's children took over, following the founder’s death at the age of only 58: Diego took on the role of president of the group, while his sisters Arianna, Paola, Marta and Barbara became managers of the most important sectors.
The Carron family’s management and their complete focus on innovation, safety and training consolidated the positive growth trend, enabling the company to become one of Italy's leading operators in the industry. Over the course of the decade, an increasing number of contracts were won for infrastructure, civil construction and redevelopment work. The company set itself new and ambitious targets, further expanding its horizons in the Triveneto area. In addition to Treviso, it opened new sites in Padua and Verona and in Friuli. A path of continuous growth followed, with the company becoming gradually involved in an increasing number of projects: the construction of Canova Airport in Treviso, the restoration of Villa Emo, the construction of the Vicenza university centre and the hospital in Conegliano, the redevelopment of the San Gaetano Cultural Centre in Padua and of the sociology faculty in Trento, as well as a number of infrastructure projects, linked to improving the road system in Mestre.
Sustainable building, from reconstructing properties in L’Aquila to social housing projects in Milan.
In 2010, the Aquapolis sports and swimming centre was opened in Bassano del Grappa, built as part of a financing project with the local authorities. By constructing the town hall in Onna, following green building standards based on sustainability criteria, the company contributed to rebuilding L’Aquila after the earthquake, on behalf of the German embassy.
Through the social housing project in Via Cenni, in Milan in 2012, Carron played a leading role in Europe’s largest residential building project using wood. The company consolidated its presence in Milan, also winning contracts for the large social housing project in Figino, the redevelopment of the management offices in Via Filzi and the restoration of Palazzo Turati, the new headquarters of the Milan Chamber of Commerce.
Carron Group strengthened its presence in Alto Adige, while Carron S.p.A. recorded its best performance of the last five years in terms of value of production.
Carron Group strengthened its presence in Alto Adige by founding Carron Bau in April 2014: a company that shares the philosophy of Carron S.p.A., based on rigour, enhancing the value of the local area and human capital. Carron Bau went from strength to strength, recording an annual turnover of between Euro 20 and 30 million. Projects completed included: the new technological “Grieserhof” nursing home and the new Paradise residential complex on behalf of Confcooperative in Bolzano, as well as the new headquarters of the White Cross, Red Cross and Avis provincial emergency services in Mirano, the redevelopment and expansion of the Marcelline institute in Bolzano and the new secondary school in Selva Val Gardena, not to mention the 25 apartments built in Merano, all with district heating.
By the end of May 2014, the company based in San Zenone had also completed a number of projects, including the work to expand Gardaland Hotel Resort (Castelnuovo del Garda, Verona), recording Euro 177.2 million in production, the highest figure in the 2011-2015 period, up from the Euro 140 million recorded in 2013 and the Euro 136.4 million recorded in the previous year.
Consolidation in the Lombardy region and expanding the range of operations.
Strong performance in terms of operating results and capacity allowed the company to become a leading player par excellence on the Italian market: at Global Strategy's annual event at Palazzo Borsa in Milan in June 2015, Carron was cited as a model company and an example of how to do business during the worst economic crisis since the Second World War. The group continued to consolidate its presence in the Lombardy region, with some of the main projects completed in 2015 including: the new urban hub of the “Fiera di Milano” exhibition area, contracted out by City Life S.p.A. in Milan, and the construction of the “City of Trees” in Arese.
The group also continued to expand in Italy’s other central-northern regions (Piedmont, Emilia Romagna, Tuscany and Lazio).
In Piedmont, Carron began work on the new, environmentally sustainable production facilities of Bulgari Gioielli S.p.A. in Valenza (Alessandria) in 2015, while in Padua it began to build the new Humanities Centre for the University of Padova, contracted out by the University itself. In 2015, Carron S.p.A. recorded a turnover of Euro 158.5 million, going against the market trend, with a positive net financial position of almost Euro 7 million, up from the negative position of Euro 6 million recorded at the end of 2014 to reach available cash of Euro 903 thousand. Shareholders’ equity also increased in 2015, from Euro 54.6 million to Euro 58.8 million, further strengthening its financial position and allowing Carron to become an ideal player on the market, offering the best guarantees and highest levels of reliability.
The Group's consolidated financial statements (Carron S.p.A. & Carron Bau) recorded a turnover of Euro 173 million in 2015.
The Group’s production continued to grow.
The Group's consolidated financial statements in 2016 recorded a turnover of Euro 203.1 million, up 17.3% compared with the 2015 consolidated financial statements, with a profit of Euro 4.1 million. This development was also defined by the portfolio of work, worth Euro 450 million at the end of 2016, Euro 150 million of which were acquired over the course of the year. EBITDA was also significant: in fact, management in 2016 generated Euro 13.8 million. In 2016, development was also given a notable boost by the company in Alto Adige, Carron Bau. The projects completed in 2016 included the restoration of the extremely luxurious Hotel Eden in Rome. With regard to large-scale infrastructure, in 2016, Carron won the contract worth Euro 25 million to build the new ring road in Guidizzolo - the largest and most complex road ever to be contracted out in the Province of Mantua, while work also began to fill in the tracks of the Trento-Malè railway line (Euro 14.3 million). In 2017, on the other hand, work began to build the healthcare district in Treviso and on the earthquake-proof hospital complex in the municipality of Fermo.
The group continued to record growing profitability, with profits being invested in the company to achieve sustainable development.
The consolidated financial statements in 2017 recorded a value of production of Euro 184 million and 707 thousand, with increasing profitability: profits increased to Euro 7.3 million, up from the Euro 4.1 million recorded the year before. “All completely reinvested in the company in order to achieve continuous, sustainable development”, explained the president Diego Carron.
Some of the last work to be completed at the end of 2017 included Gucci's new logistics hub in Scandicci (Florence) and the restoration of the former post office building in Milan, set to be the home of Italy's first branch of Starbucks. Other important contracts won in 2017 included the expansion of the Franciacorta Outlet Village in Rodengo Saiano (Brescia). 2017 also saw the Group refine its organisational structure, which involved its real estate activities being separated from its core construction business: an evolution that followed the logic of rationalisation and efficiency which has always guided management, with the aim of improving performance in line with stakeholders’ expectations.
Continued growth for the portfolio of orders and implementation of cutting-edge communication technology on-site, fostering continuous development, with investments also being made in employee welfare.
The Group’s development can also be seen in its portfolio of orders, which amounted to around Euro 505 million in the first months of 2018, of which 181 acquired during 2017 and in the first quarter of 2018, 415 of which for civil construction projects and 90 for infrastructure, up from the Euro 407 million of orders recorded at the end of 2016.
Projects ongoing at the start of the year included the construction of the hospital in Fermo, for which Carron worked on the technical design after winning the contract from the Marche region, while work continued on the “Healthcare District” in Treviso. The project to restore the former post office building belonging to Kryalos S.g.r. S.p.A., on behalf of the Pacific 1 Fund, was also completed, in Piazzale Cordusio, near to Milan’s cathedral, set to be home to Italy's first Starbucks Reserve™ Roasteries. There were also some important worksites in Rome, including the restructuring of the BNL property, set to be completed in September 2018, and in the hotel industry, with the restoration of Hotel Locarno being completed in February without the hotel ever needing to close its doors. In the Milan area, projects included the redevelopment of a property in Via Chiese on behalf of Generali Real Estate, recently completed. In Trieste, Carron worked on the new Allianz headquarters and is working on the restoration of another prestigious property belonging to Allianz in the historical centre, which will become a 4-star hotel run by the American chain DoubleTree by Hilton. Work will also soon begin to build Turin’s largest nursing home. With regard to large infrastructure, work included the huge project to build the Vignola bypass, a main road link that will become fundamental to connect the provinces of Modena and Bologna. “Based on the orders in the portfolio - anticipated the architect Diego Carron - we're expecting production of Euro 190 million in 2018. One of our development drivers is the use of cutting-edge technology on our worksites”. For example? “We have begun a digitalisation process which allows all players involved with the projects to communicate, using a common interface: ‘BIM’ (Building Information Modelling). This is the construction industry’s response to the widespread use of information technology - explained Carron's president - guaranteeing optimal coordination among customers, designers, manufacturers and the company's workers.” In addition to efficiency, the Group’s development is also based on sustainability, with continuous investments in comprehensive employee and social welfare. Employee benefits include free check-ups and mammographies for staff, as well as investments to benefit society as a whole. Carron Group contributes to the non-profit “Altre Parole” Foundation to improve cancer treatment and, in August 2017, it established “Elios” together with other enterprises from the Pedemontana Veneta area - a new non-profit organisation to support local health authority no. 7 with a number of healthcare projects. The first project last December focused on the donation of a digital operating theatre for the hospital in Bassano, which is now northern Italy’s first to have technology for latest-generation, minimally invasive surgery, able to improve the quality of treatment for cancer patients. “Our focus on people, both inside and outside the company, is and shall remain at the heart of our management strategy, ensuring responsible development”, this is how the Carron family described the principles of the Group from San Zenone.
THE GROUP CONTINUES TO GROW: PRODUCTION RISES TO 217 MILLION AND THE PROJECT PORTFOLIO HAS INCREASED.
The year 2019 ended with an important, positive sign. Production increased to 217 million euros, up 5% on the previous year, while net profit in the financial statements saw a 2% increase, equal to 9.1 million euros. With EBITDA standing at 23% (YOY), reaching 15.9 million euros, equal to 7.33% of production value (+18% YOY), and EBIT improving by 21% at 14.4 million euros, equal to 6.60% of production value, the Group’s solidity and continued development is confirmed. This growth is also demonstrated by the project portfolio which at 31 December 2019 recorded a value of 913 million euros, compared to 583 million euros the previous year. The growth corresponds to a quantitative but also qualitative evolution, with the company confirming its natural ability to penetrate the target market by understanding how to act on its changing needs and consequently expanding its range of action.
Group President Diego Carron explains: “The excellent performance recorded in 2019 confirms our Group as one of the main players in the Italian construction sector. It is an important result, particularly if we consider the deep and devastating economic crisis of recent years which, as we all know, has now dramatically reappeared with the Coronavirus pandemic. However, the numbers confirm that we are on the right track: our company is large and complex, but above all it is solid and not only from a financial point of view. It has always been our mission to grow and evolve on a strong and shared basis of values, both entrepreneurial and cultural. Our principles evoke “business and ethics”, values that are inseparable and which, hand in hand, have the ability to change the world. Business without ethics generates monsters, while ethics without business adds no value to reality. We must always remember this, especially during hard times.”
Business and Ethics: together to try to change the world
Carron Group remains a solid and constantly developing company.
The 2019 financial year saw an improvement in all profit margins: production rose to 217 million euros, a 5% increase on 2018, while the Group’s net profit reached 9.1 million (+2%).
The backlog at 31 December 2019 amounted to 913 million euros compared to 583 million the previous year, growth which corresponds to a quantitative but also qualitative evolution.
It has always been the company’s intention to grow and evolve on the basis of strong and common entrepreneurial and cultural values. All the actions implemented by the Group have always been inspired by economics and ethics, two inseparable values that in tandem can change the world.
Business without ethics generates monsters, while ethics without business adds no value. This is something we should always remember, especially in difficult times.
EXPERTISE, COMMITMENT, VISION: OUR STRENGTH AGAINST THE PANDEMIC
With a turnover of EUR 250 million, consolidated net profit of EUR 9 million in line with the previous year, and a working portfolio of EUR 826 million, the Carron Group held its own against Covid and closed the terrible year of 2020 with more than positive results.
This is source of pride for myself, my family and for the whole company.
We will never forget the fear, worries and sacrifices we felt when alternating between construction site closures and re-openings. We will remember that, in spite of everything, we never failed to meet our obligations and how we managed to take on many new challenges. We have done this together, making the most of our skills and drawing on the commitment and dedication that has always distinguished our way of doing business.
Our corporate mission “Together We Grow” could not have been demonstrated more concretely.Aware of our strengths and values we look forward to the future and our new business challenges, ready to take them on. And win.
Group President Diego Carron