Chief executive blames contracting economy for 7% drop in revenue
Midlands-based contractor Shaylor Group saw its profit fall by 52% in the 12 months to 31 March 2010.
After large contractors started targeting smaller jobs in the £5-10m bracket, tender prices have fallen, hitting profits at the family-owned firm.
In its financial year to 31 March 2010, Shaylor Group’s turnover fell 7%, to £56m, down from £60.5m in its 2009 financial year, which ended 31 March 2009. In the year to March 2010, its profit fell 52% to £1.2m, down from £2.5m a year earlier.
Commenting on its 2010 financial year, Stephen Shaylor, chief executive of Shaylor Group, said: “This was a year of consolidation for the business. We had hopes of growing, but the economy contracted and our revenues were down 7% to £56m for the year to 31 March 2010. This was a period when the recession impacted and the construction industry in particular went into significant reverse.”
He added: “For many of our clients, their optimism evaporated. However, with figures from the Office for National Statistics showing that output in the West Midlands fell by 23% last year, our performance was highly creditable.”
The group ended the financial year with net cash of £4.8m.