Contractor Graham Group has hailed an “excellent” 2017/18 after increasing revenue by over a third, despite a £3m fall in pre-tax profit.
The company said turnover had increased by 36% to £767.6m in the year to 31 March 2018 with growth across all divisions, while order books were at record levels.
Pre-tax profit during the period dipped to £13.1m from £16m last year, and executive chairman Michael Graham said margins had “unquestionably been hit” by “a joint venture going into administration and the knock-on effects of a major contractor collapse”.
Nonetheless, the firm’s board said profits sat at a level it was happy with after a year of investment in the business and issues in the wider industry.
Cash at bank and in hand has increased to £70.1 million, up from £66.6 million last year.
Michael Graham (pictured) said: “Fundamentally, Graham is in an excellent position. Each of our divisions has a record order book and a pipeline of opportunity that is strong in both volume and quality. Cash at bank and in hand has passed the £70m mark with good operating cash flows which means that, among other things, we can ensure prompt supplier payment that will stand us in good stead for more sustainable growth.
“Looking forward, we increased investment in the business during 2017/18, developing a guiding principle of ‘delivering lasting impact’ that reflects who we are and what we stand for. It formed the basis for a strategic rebrand – the first in 25+ years – and was rolled out nationally from the end of April. Our business has evolved significantly in the last 25 years and we’re really proud of the result.”
Recent projects the firm has been involved in include the £55m Grand Central hotel in Belfast for Hastings Hotels, a new commercial hub for start-up and SME businesses at the redeveloped Preston Barracks in Brighton for U+I, and a £55m waterfront apartment scheme on Strand Street in Liverpool for Patten Properties and Panacea Property Development joint venture.
It has also worked on a £113m student accommodation project for the University of York, the £134 million Baird Family Hospital and Anchor Centre development for NHS Grampian, as well as securing a place on the £750m Clyde Commercial Framework as part of the Kier Graham Defence joint venture.
