JRL says strategic review of business paying off after firm edges back into black

JRL has said that a strategic review of the business begun with its new co-owner is paying off after the firm posted a pre-tax profit in its latest set of accounts after racking up cumulative losses of more than £130m in the previous three years.

In its latest accounts for the 11 months to March 2026, the firm made a pre-tax profit of £2.9m, reversing three successive sets of losses which saw it sink £49m into the red last time for the 16 months to April 2025.

These prompted the business to begin a strategic review with Malaysian co-owner IJM Corporation, which saw the conglomerate take a 50% stake in the business for £50m last year.

In its latest accounts, chairman John Reddington said: “What the period demonstrates is that the actions taken, the contract-by-contract reviews, the business-by-business evaluations, the strengthening of governance, the recapitalisation, and the disciplined approach to new work are taking hold.”

He added: “Together with our partner IJM, we have continued the comprehensive review of the operating model commenced in the prior period. The work has progressed in a measured, evidence-led way.

“Overheads, management reporting, operating centres, gross margins and the role of the Group’s offsite manufacturing platform have all been examined. Where adjustment has been required it has been made; where the integrated model has been validated it has been retained. Tangible outcomes during the period include the restructuring of our manufacturing facilities across the UK and Ireland, securing operating savings and improved efficiencies.”

JRL, whose group of 14 companies include main contractor Midgard, concrete frame business J Reddington and London Tower Crane Hire, said that turnover for the 11 month period was £573m – putting full-year revenue at £625m.

In the accounts, the firm admitted: “The directors are encouraged by the result, while remaining conscious that profit before tax of £2.9m on turnover of £573m is a starting point rather than a destination.”

Midgard and Midgard City is JRL’s biggest business with turnover for this division hitting £410m and a pre-tax profit of £11m, compared to a £15m loss last time.

It said that its order book was in excess of £2bn, the largest in its history, and added: “The Group has implemented enhanced governance, risk-management and reporting processes, and has commenced a comprehensive review of its operating model, including the balance between self-delivery and external supply chain, the management of fixed-price risk, and the scale and location of overheads.”

It said that staff numbers during the period had shrunk by 15% to just over 1,800 people.

Listed on Bursa Malaysia, the country’s stock exchange, IJM was set up in 1983 and specialises in construction, property development, materials and infrastructure concessions.

In the year to March 2026, IJM said that in unaudited numbers it increased turnover by 10% to RM6.9bn (£1.3bn) but pre-tax profit was down 62% to RM298 (£55m).