John Graham Holdings builds pre-tax profit by 30%

Pre-tax profits at building and engineering group John Graham Holdings last year increased by 30% to £7.43m (€10m).

This follows revenues at the group increasing by 17% to £490m in the 12 months to the end of March 2015.

Numbers employed at the Northern firm increased from 1,532 to 1,645 in the year. According to the directors, the results were “satisfactory.”

The directors’ report states that “overall, our group businesses continue to deliver robust performances in what remains a challenging market”.

The directors add that “our three main businesses provide us with a well balance services offering within the group and are underpinned by a healthy forward order book”.

The group’s business is split between construction, asset management and investment. The directors say that in relation to its construction business “our spread of delivery capability across a broad range of sectors, the consolidation of our increased geographical footprint and our continued focus on operational efficiency leave us well positioned to capitalise on opportunities that come our way”.

The directors also state that its investment business continued to generate construction and asset management business leaving it with a strong platform for sustained growth.

The accounts show that the group recorded an operating profit of £7m and net interest receivable payments of £365,000 resulted in the pre-tax profit of £7.4m.

The group’s net profit margin increased from 1.4% to 1.5%. The group’s shareholder funds at the end of last year totalled £42.9m. The group’s cash during the year almost doubled, going from £17.52m to £31.94m.

The group achieved the increase in revenues in spite of its revenues in the Republic declining from £5.4m to £1.6m. The group posted £428.7m in revenues from construction; £62.45m in revenues from asset management; £6.8m in revenues from investment projects and $1.48m in income from developments.

The profit last year takes account of non-cash depreciation costs of £2.6m. Its cost of sales last year topped £456m, with administration costs totalling £27.28m.

Remuneration to directors last year totalled £1.33m, with £373,000 being paid to the highest paid director.

Numbers employed grew by 113 to 1,645 with staff costs increasing from £56.78m to £63.59m.