Byrne Group has posted a rise in pre-tax profits, despite being forced to write off £1.9m following the collapse of modular home builder Ilke Homes.
Its profit rose 6 per cent to £6.8m, while turnover rose from £153m to £191m, according to the group’s financial statement for the year to 30 of June
Land Subsidiary O’Keefe Construction – which Byrne bought out of administration last year – turnover exceeded its budget targets to reach £45m, while operating profit came in at £2.9m.
However, its performance was greatly affected by the collapse in June from key customer Ilke Homes, which resulted in bad debt of £1.9m. Ilke later laid off 1,150 employees folding with a debt load of 120 million poundsexcluding intercompany debt.
Elsewhere in the business, concrete frame contractor Byrne Bros saw revenue fall from £73m to £65m and operating profit almost halved to £2.5m in due to “very turbulent” market conditions.
However, it remained resilient, completing work for HS2 in Euston, Paddington Amphitheater and the Elephant Park residential development in Elephant and Castle, London, last year.
Refurbishment, new build and fit-out contractor Ellmer Construction fared better, with turnover of £82m and operating profit rising to £2.4m.
Current projects include fit-out work at Google’s new offices in King’s Cross.
Overall, Byrne said its financial performance had been strong in a “very challenging” economic environment, closing with a cash balance of £24.1m.
“While the market is challenging, we see no disruption in projects that fit our skill set and capabilities,” said director Michael Byrne.
“We look forward to delivering our target turnover this year and growing the business steadily with a keen eye on profitability and negotiating work to help achieve this.”
Byrne was one of CN the best land engineering contractors in 2022, but left the top category this year.
