PM Group sees profit fall amid heightened costs and inflation

Last year, 56% of its business was on behalf of multinational clients in Ireland, while the remainder was overseas

Thu, 29 Aug, 2024 - 09:57

Emer Walsh

Irish construction project delivery firm PM Group said its operating profit fell by almost a quarter to €33.9m as it invested in expansion despite rising costs and inflation.

The group's total revenues declined by 7.5% to €566m, including pass-through revenue where it carries equipment and contract costs on behalf of clients. Underlying professional services fees were in line with 2022, the company said in a statement on Thursday.

Net assets increased to €164m which, combined with minimal debt, underpins the group’s "capacity to support further investment and drive growth," it added.

Last year, 56% of its business was on behalf of multinational clients in Ireland, while the remainder was overseas.

The group employs more than 3,500 people across Europe, North America and Asia – almost 40% of whom are shareholders in the business.

“I’m pleased to report that we delivered a resilient performance in 2023 despite significant economic and geo-political challenges in a number of our markets coinciding with the conclusion of key projects," said Anthony O'Rourke, CEO of PM Group. "The operational and financial performance of our business is a testament to the fantastic efforts of our people right across the organisation."

“Our largest market, Ireland, performed strongly with robust multinational investments continuing into 2024, signalling a positive outlook for Irish FDI."

In continental Europe, Mr O'Rourke said last year saw strong growth in the Benelux region while it grew its service offering in the German market with the expansion of a new office in Frankfurt.

However, the group said its Swiss market contracted in the period, adding that Poland also experienced difficulties with the effects of the Ukraine war and high inflation, leading to reduced investment.

PM Group continued to expand in the US, growing its Philadelphia office and opening a new location in Raleigh-Durham, North Carolina, its fifth office in the country.