One of the north’s biggest construction groups registered a pre-tax loss of almost £9 million last year.
The directors of McLaughlin & Harvey said its Northern Ireland construction business suffered from inflation and a number of loss making jobs in its last financial year.
The Mallusk-based group’s interests include construction, civil engineering, property development, wholesale distribution and landfill sites.
New accounts filed with Companies House show the group generated a turnover of £737 million for the year ending June 30 2023.
That was £63m less than the £800m reported by the group in 2022, but the previous accounts covered an 18 month period.
McLaughlin & Harvey finished the last financial year with a loss before tax of £8.7m.
The directors said the wider construction industry continues to face volatile trading conditions impacted by “the lingering impact of Covid delays, geopolitical turbulence on prices, and availability within the supply chain and labour shortages”.
In a review of its 2023 business, they acknowledged the financial performance was “disappointing”, but said the group’s diverse portfolio of interests had served it well.
“Whilst the construction business saw record annual turnover levels as it serviced a pipeline of profitable work… the Northern Ireland construction business had to provide for potential losses on a small number of jobs.
“These jobs were significantly affected by the severe inflation encountered after the group had entered into contract.
“We are engaging positively with our clients to minimize the financial impact of these loss making jobs and to recover the provision losses provided for in the accounts.”
The group said its Scottish construction end performed well last year, as did the civil engineering and distribution businesses.
“The continued transitioning onto a wide number of government frameworks has facilitated a strong order book for both construction and civil engineering and the directors anticipate a much more positive financial performance in the coming year.”
One weaker end of its business was the group’s Scottish waste management subsidiary Barr Environmental Limited (BEL), which reported a loss of £2.2m.
The directors said a change in the Scottish Landfill tax legislation on the first day of the financial year severely impacted trade and consequently performance.
The group consolidated its waste business into a single landfill site at Auchencarroch in West Dunbartonshire, selling off three locations and a skip business, while another site was closed in Cumnock, resulting in an impairment charge of £1.2m.
The latest accounts show the group’s workforce grew to 816 people at the end of June 2023, with staff costs reaching £58m.
The group’s highest paid director received £660,000 last year.
The loss in 2023 hit shareholders’ funds by just over £8m, ending the year at around £50m.
But cash reserves surged to £113m, up from £85.6m in 2022.
The directors approved a dividend of £2.5m.
