CONTRACTOR Marcon Fit-Out has become the first major firm in the north to post results which reflect the generally downwards trend in the region's construction sector.
The Antrim-based joinery and heritage fit-out specialist has revealed a sharp drop in turnover and profit in the year to March 2019, although its headcount did rise marginally.
It comes in the wake of the latest purchase managers’ index from Ulster Bank showing that new orders are continuing to fall at record rates in key sectors like construction and manufacturing as firms express "serious concerns" about the regional economy.
Indeed in November, activity in the construction sector fell at the sharpest rate since June 2013, albeit with companies attributing Brexit uncertainty to that reduction.
Marcon, which this month begins work on the design and build of a new HMS Victory at the Royal Navy museum in Portsmouth, saw its sales fall back from £33.5 million to £29.7 million.
Pre-tax profits also fell back sharply from £3.1m in 2018 to £1.8m last year, according to accounts filed at Companies House.
But in a strategic report accompanying the financials, principal director Mark O'Connor (47) says it was still a successful year for the group (which also includes Marcon Fit-Out Ireland, which was incorporated in the Republic in September 2016).
He said: "The group has continued to enjoy income from key customers, which is expected to continue for the foreseeable future, and is also winning new business across the UK and Ireland.
"We will continue its success by remaining committed to providing a high quality service to customers while remaining competitive and ensuring gross profit margins remain in line with company policy."
Marcon, which was founded in 2004 just before the property crash, remains profitable, though its gross margin fell back from 16.1 per cent in 2018 to £13.4 last year.
Staff numbers last year increased by two to 58, but the wages bill actually dropped on the previous year from £2.3m to £2.1m. The highest-paid director's salary fell from £36,257 to £30,000.
Over the past number of years Marcon has been responsible for the fit-out of a number of iconic museums and exhibitions.
They include the Museum of Irish Literature in Dublin; Biggin Hill Memorial Museum, London; ‘Dippy on Tour’ at the Ulster Museum; Kylemore Abbey, Connemara; the American Air Museum at IWM Duxford; Whitby Abbey; Kilkenny Medieval Mile Museum; Seamus Heaney HomePlace and Titanic Belfast.
