Revenue up 160% but inflation and investment eat into bottom line
Glencar continued its rapid growth last year with revenue at the industrial and logistics specialist rising to £418m from £160m the previous year.
Despite the 160% increase in turnover, profit at the firm slid to £800,000 – down from £2.3m in 2021 – as the impact of price inflation and investment in the business was felt, according to accounts for the year to 30 September 2022.
Eddie McGillycuddy and Chris Gleave, who co-founded Glencar in 2016, told Building last autumn that the business had been caught out on several fixed-price jobs agreed in the summer of 2021, which saw their budgets blown by price inflation.
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Over 100 employees were hired by Glencar during the period, more than doubling its wage bill, and the company moved to offices in St Albans and Manchester, as well as expanding to Ireland.
Glencar’s results reported a committed order book in excess of £400m and Building understands that the firm is expecting revenue of between £550m and £600m for the current financial year, with stronger profit margins of around 2% targeted.
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