TOOMEBRIDGE-based precast manufacturer Creagh Concrete has traded back into profit, despite experiencing what it admitted were "escalating raw material costs across all lines".
In the year to September 30, it posted a bottom-line profit of £379,843, its latest accounts show.
That compared to a £6,341,081 loss the year before, which it blamed largely on a hefty £4.2 million hit on a large UK contract.
The precast concrete specialist, which is run by brothers Gerard, Seamus and Patrick McKeague, increased its sales from £102m to £113m over the period.
It has 664 staff on its books (up from 646 in 2021), and its wages bill rose to £26.5 million. The package for its highest paid director was just over £120,000.
"We finished the financial years in a much improved position despite the continued inpact of Covid and Brexit," the directors said in a strategic report accompanying the accounts.
"The strategic, operational and financial measures we have successfully implemented brought us back into profit.
"However, a number of additional challenge, including the energy price crisis and cost inflation across all supply chains are reflected in the year-end results.
"We experienced escalating raw material costs, in particular from February 2022. The enduring impact and trajectory of prices increases was unknown in the early months of 2022."
They added: "The binding contract terms with a number of customers restricted the ability of the company to pass these increases on, which resulted in significant gross margin erosion as costs continued to rise.
"As the severity of the increases became apparent, we worked closely with customers to agree rises and reduce the risk of future fluctuations - actions which will continue to improve our financial performance in the coming year."
Established in 1976, Creagh has been a pioneer of precast and has grown to become one of the largest and most innovative manufacturers of concrete products for a diverse range of market sectors across Ireland and Britain.
In recent years it has transformed itself from a regional product supplier to a national specialist sub-contractor to some of the largest commercial and residential construction companies in the UK, providing engineering, design, manufacture, delivery and installation of structural, flooring, facade and other concrete products.
