Wednesday 17 July 2019

Graham profits fall 37pc as NI builder 'stabilises'

Project: The Grand Central Hotel in Belfast
Project: The Grand Central Hotel in Belfast

Gordon Deegan

Pre-tax profits at Northern Ireland's largest construction group decreased this year by 37pc to £8.18m (€9.1m).

Accounts filed by John Graham Holdings Ltd to Companies House in the UK show that the business recorded the drop in pre-tax profits as revenues decreased by 4.25pc, from £767.63m to £735m in the 12 months to the end of March this year.

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The directors said that each division in the group continues to deliver a robust performance.

Staff numbers rose by 163 to 2,161, with staff costs amounting to £109m.

The firm paid out dividends of €2.65m in the 12 months to the end of March this year, after paying dividends of £6m in the prior year.

In their business review, the directors said that the year to the end of this March "saw a period of stabilisation after a number of years of significant growth".

The review saids that "despite the challenging market conditions faced by many of our competitors, the directors are pleased to report that each division within the group has remained profitable".

It saids that "each division within the group is in a strong position with record order books and a pipeline of opportunity that is strong in both volume and quality".

The directors add that they regard the results as satisfactory, and say that the group business plan is based on securing and delivering revenues from both public sector and private sector clients across the UK and Ireland. The firm is primarily engaged in building, civil engineering, interior fit-outs, facilities management and project investment.

John Graham's projects include the Grand Central Hotel in Belfast, the Royal Commonwealth Pool in Edinburgh and the Belfast Maternity Unit at the Royal Victoria Hospital.

The group's balance sheet further strengthened in the year to the end of March, with accumulated profits increasing from £57.4m to £61.6m.

Its cash declined from £70.12m to £62.92m.

The profit takes account of non-cash depreciation costs of £2.59m.

Directors' remuneration remained at £2m, with pay to the highest-paid director increasing from £506,000 to £524,000.

The business recorded post-tax profits of £6.6m after paying corporation tax of £1.5m.

Operating profits totalled £7.983m.

Irish Independent

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