Restructure hits bottom line but long-term utilities contracts boost family-run firm
Pre-tax profit has fallen by a third at McNicholas Construction following a major restructure.
Figures released this week by ‘Green Macs’ showed that pre-tax profit dropped 30% to £2.1m for the year ending 21 march 2006. Turnover fell by 17% to £143m.
It has been a turbulent few years for McNicholas Construction which has had three chief executives in the past three years and as recently as 2003 was making losses of £9m.
Two years ago the company restructured to concentrate on rail, civil engineering and utilities work.
Group chief executive Barry McNicholas said: “Having strategically downsized selected parts of our operation in 2005/6, which is reflected in these results, our business is now growing again in this current financial year in a controlled and selective manner."
"We have been successful in securing a number of long-term contracts in the utilities sector with key, blue-chip clients and we are confident in our continued success in the rail, civil engineering and renewable energy markets. These factors and our strong financial position provides us with a very positive outlook for the future.”