ONE of the north’s biggest construction groups saw its profits squeezed due to rising costs last year, new accounts show.
McLaughlin & Harvey Holdings, which operates across building and civil engineering contracting; property development; landfill sites and wholesale distribution, generated £800 million in revenue in the 18 months to June 30 2022.
But the directors of the Mallusk-based group said its response to “supply chain delays, volatile pricing and labour restrictions” resulted in “substantial additional costs”.
The group’s profit before tax in the 18 months to June (£3.2m) was 46 per cent down on the £5.9m it recorded for the 12 months to December 31 2020.
However, McLaughlin & Harvey’s directors said the group’s outlook for 2022-23 looks strong as a result of transitioning onto a wide number of government frameworks.
The Co Antrim firm has continued to grow its profile in Britain during 2022, landing a succession of major contracts in recent weeks.
The latest deal to build a 12 storey office tower in Glasgow is reportedly worth £200m.
That followed four contracts landed during November totalling £134m. McLaughlin & Harvey also secured a £55m deal in August to build a new hangar at Farnborough Airport.
The latest grouped accounts published by Companies House show it held net assets of £58.6m as of June 2022, supported by net cash of £85.6m.
The directors described the latest reporting period as “challenging”, but said its cash reserves would help shield it from rising interest rates.
“As interest rates in the UK rise, the significant cash balance means that McLaughlin & Harvey’s cost base will not be exposed to additional interest payable,” stated the report.
Looking ahead, the directors said: “Whilst market conditions in the UK and Ireland continue to be highly competitive across the business sectors we operate in, the on-going investment in business development, infrastructure and in our people and skills base will ensure continued success for the group going forward.”
