Despite controversy over his buyout and restructure of cost consultant, Charles Johnston is bullish about future

MDA seems to have found itself landed with the role of the cadaver in an anatomy class: an exemplum of the problems faced by QSs everywhere.鈥

That was how 好色先生TV saw the firm鈥檚 situation back in November 2001. It had posted a 拢2.5m loss on turnover of 拢16.3m, its chief executive, Richard Houghton, had just been voted out, Stefan Allesch-Taylor, the hyperactive entrepreneur who owned 29% of the company, wanted to merge it with a rival, and a 鈥渂randing expert鈥 called Elaine Headlam had just taken over despite entrenched internal opposition among the firm鈥檚 200 employees. Nine months later it was in administration.

In July 2005, all of that seems like a bad dream. MDA is a smaller outfit 鈥 140 staff and a turnover of 拢10.2m 鈥 but its position is relatively secure. For one thing, it is owned by 46 of its own staff, and has stable leadership.

The man credited with rescuing MDA is Charles Johnston, a former construction director at J Sainsbury. He became chairman ahead of a confidence vote in Headlam 鈥 she won but resigned anyway 鈥 then led a management buyout in August 2002.

Johnston maintains that the firm is now poised to deal with what may be a difficult market. The company is half way through a three-year business plan, and this year expects to make a profit of about 拢500,000.

鈥淭he company is now entirely owned by directors and staff, so the younger generation can get involved in succession planning which motivates staff,鈥 he says. But the market is not about to give the company an easy time, according to reports on construction output from the DTI and the Construction Products Association.

Johnston responds that MDA has defended itself by working on projects across all sectors. 鈥淭he commercial market has been jittery,鈥 he concedes, 鈥渂ut we have been strong in residential and hotels.鈥

Although it is difficult to imagine that anything might keep the affable Johnston awake at night, one of his major concerns is pressure on margins. 鈥淨S standards have been brought down by jobs being won purely on a cost basis,鈥 he says. 鈥淐lients should spend more money up front and they will save in the long-term.鈥

He is also concerned by construction鈥檚 lack of a voice in government. He supports the idea of reforming Movement for Innovation, the DTI-backed body that was a stand-alone initiative but now falls under the Constructing Excellence umbrella. 鈥淭here was a lot of government input so we already had a successful solution. It doesn鈥檛 need a lot to bring that back and we鈥檙e talking about starting that up again.鈥

Despite suffering its own blow when MDA failed to be named as a framework adviser for the governments 拢2.1bn 好色先生TV Schools for the Future Project, the company has won a lot of PFI work through Carillion, is the cost manager on the roof project at Wimbledon鈥檚 Centre Court, and is part of the team that has just submitted a planning application for Center Parcs at Woburn.

It looks good on paper, but MDA Consulting 鈥 and Johnston鈥檚 business decisions 鈥 will be judged by the progress made when 18 months is up.

MDA鈥檚 company profile

MDA is among the top 15 QS firms in terms of size but Johnston says it鈥檚 main competitors are the likes of Davis Langdon, WT Partnership and Gardiner & Theobald.

Probably the main strength of the firm is its long-term relationships with blue-chip clients. Eighty per cent of the work undertaken this year was for firms that it worked for last year, included HSBC, which retained it for continuing work at its Canary Wharf tower.

Johnston has been in the development and construction industry for 25 years. After a period working as a project manager, he spent 10 years as a senior executive for J Sainsbury, ending up as director of construction and facilities management.

In the UK, MDA's headquarters are at Croydon and it has other offices in London, Newcastle, Leeds, Manchester, Leicester, Birmingham and Bristol. Johnston plans to open new offices in Wales and East Anglia.

MDA has formed joint ventures with local companies in Eastern Europe, and has a wholly owned office in Brussels.