Turnover and profit have fallen heavily at demolition firm Brown and Mason for the year ended 30 April 2009
Pre-tax profit at the London-based subcontractor, which also specialises in asbestos removal, sank to £719,402, a fall of 49% from £1.4m reported the previous year. Turnover fell 37% from £31m to £19m.
The results are a further indication that demolition firms, which are involved early in the construction cycle, are suffering ahead of others in the downturn. Last month, Essex-based John F Hunt revealed a 28% drop in turnover to £26m.
A statement accompanying the financial results said: “It is fair to say that 2008/09 was one of the most challenging economic environments in recent history. Against this backdrop the directors are pleased that turnover remained healthy at just under £20m.”
Despite the tough trading conditions, Brown and Mason managed to boost its net assets to £7.6m. A 25% cut in staff numbers from 201 to 152 reduced wage costs by £1.5m, with the highest paid director taking a £50,000 pay cut to £310,999.
Directors at the firm remain optimistic, with the statement adding that the company’s pipeline of projects “remains strong on the back of further contract wins”.