McLaughlin & Harvey has returned to the black, posting a pre-tax profit of £12m after disappointing results last year.
Turnover at the County Antrim-based firm rose from £737m to £870m in the 12-month period to 30 June 2024 on the back of a strong performance across a diversified project portfolio.
Last year it posted an £8.6m loss, blaming macroeconomic conditions and a number of loss-making small jobs in London and the South East.
Cash at the bank was £147m – up from £113.7m the year before. The average headcount was 110, up from 102 in the previous year.
The group, ranked at number 28 in the CN100 index by turnover, said it was pleased to have seen a “strong return to profitability”, with both the Northern Ireland and Scotland businesses contributing positively to the overall performance.
“The construction and civil engineering businesses continue to benefit from a diversified portfolio of work in both the private and public sectors with continued focus on engaging new work via a two-stage tender process which has mutual benefits for both the client and the business,” it said in a strategic report accompanying the accounts.
A focus on frameworks and client relationships helped to bolster the firm’s portfolio in key sectors, such as defence, healthcare and commercial office redevelopment, despite a slowdown in tender opportunities within the public sector.
The distribution business, which is focused on Northern Ireland, performed particularly strongly, and that success was set to continue in the current year, it said.
However, Barr Environmental Ltd, the group’s waste management subsidiary, was hit by declining waste volumes ahead of the impending landfill ban, reporting a pre-tax loss in the year of £2.1m.
Recruitment also continued to be challenging as companies competed for talent with a growing skills gap and fewer people joining the industry, the group said.
In response, it had reviewed and enhanced its employee benefits to ensure it retained staff and attracted the right people to meet project demands.
Overall, McLaughlin & Harvey said it entered the new trading year in a very strong financial position with net assets of £58.4m and a cash balance of £147m.
“Looking forward, the current construction and civil engineering order book is in a strong position for 2024/25 and beyond with the majority of budgeted turnover secured for the financial year ahead,” it said.
