Construction BUSINESS

In the face of a challenging year for the construction industry, McLaughlin & Harvey, a prominent construction group in the north, disclosed a pre-tax loss of nearly £9 million in its latest financial report. This setback is attributed to inflationary pressures and losses incurred from specific projects. The Mallusk-based group, with diverse interests in construction, civil engineering, property development, wholesale distribution, and landfill sites, reported a turnover of £737 million for the fiscal year ending June 30, 2023, reflecting a decrease of £63 million compared to the previous year.

The directors acknowledged industry challenges, including lingering COVID-related delays, geopolitical turbulence affecting prices and supply chains, and labour shortages. Despite the financial downturn, they emphasized the resilience of the group’s diverse portfolio. The Northern Ireland construction arm faced losses on some projects due to severe inflation post-contract initiation, with directors actively engaging clients to minimize financial impacts.

In contrast, McLaughlin & Harvey’s Scottish construction sector, civil engineering, and distribution businesses performed well, with a positive outlook for the coming year. Challenges were encountered in the Scottish waste management subsidiary, Barr Environmental Limited, which reported a £2.2 million loss due to changes in Scottish Landfill tax legislation. To mitigate this, the group consolidated its waste business, incurring a £1.2 million impairment charge.

Despite the impact on shareholders’ funds, which decreased by over £8 million, closing the year at around £50 million, cash reserves notably increased to £113 million. The directors approved a £2.5 million dividend. With a workforce of 816 people by June 2023 and staff costs reaching £58 million, McLaughlin & Harvey remains focused on navigating challenges, leveraging its diverse portfolio, and anticipating a more positive financial performance in the upcoming year.

Source: The Irish News