Ardmore Construction margin tops 8%

Aaron Morby 2 months ago
Share

Ardmore Construction has joined the swelling ranks of contractors warning that Brexit uncertainty has hit project starts and contract awards.

Ardmore remains confident about the year ahead

Despite a slowdown in projects, the specialist London residential and hotel contractor saw pre-tax profit soar by nearly 45% to £22.4m.

Revenue fell by nearly a third to £257m, although managing director Patrick Byrne said turnover would now stabilise this year.

Byrne said that Brexit had contributed to delays on project awards and starts, but the firm remained confident its main London market would remain resilient.

The core business within the group delivered an 8.4% operating margin.

Byrne said the firm’s prudent profit recognition policy of only taking margin as the inherent risks in projects were worked through had contributed to the strong performance in the year to 30 September 2018.

The fall-off in revenue saw average staff levels slide 10% to 280 over the year.

Private accounts reveal that Ardmore Construction had nearly £27m held by its clients in retention during the year.

At the end of last year, Ardmore was appointed to deliver the new Design District at the Greenwich Peninsula in south London.

Looking ahead Byrne said: “The company has secured 100% of its turnover, which subject to unforeseen circumstance should, be a respectable £250m.”

He added: “The board continues to be optimistic as the company’s activities are largely in London and the London economy has shown resilience over the years.

“The shortage of affordable housing in London remains.

“However, with the UK government distracted by European events, house building appears to have been pushed down their list of priorities,” he warned.

 

Latest news

Interserve finance chief quits

Mark Whiteling exits weeks after banks take control in pre-pack deal
7 hours ago

Green light for reworked Paddington Cucumber

Reuben Brothers gain revised planning for landmark west London tower
5 hours ago

Winners unveiled for £400m Dounreay decommissioning

28 firms named on major nuclear framework: Full list of winners
14 hours ago

Guinness plans largest ever homes scheme in Leeds

Plan for over 900 homes at Leeds South Bank site
14 hours ago

Opinion: Lack of talent at the top is hurting construction

Time to promote a new generation of younger directors to end the "over-optimism" bonus culture
14 hours ago

Ex-Crossrail chief Wolstenholme wanted more bonus cash

Project chief challenged decision to deny him extra pay for performance
1 day ago

Waiting over for £340m Belgravia council estate rebuild

Westminster council seeks firm for Ebury Bridge Estate rebuild
14 hours ago

Morrison takes on refurb job from failed contractor

Morrison to complete renovation scheme after original builder went bust
1 day ago

Call-up for £110m Southsea seafront defence job

Portsmouth city council aims to shortlist three firms to bid eight year project
14 hours ago

Eight placed on £200m London Universities framework

Graham, Speller, 8build and Walter Lilly among preferred list
1 day ago

Boost your online presence – join the Enquirer Directory

New site for suppliers and buyers showcases products, services and latest stories
12 months ago

Giant ‘concreteberg’ blocks sewers in Islington

Work starts to chisel out 105 tonne blockage as hunt starts for culprits
2 days ago

Lendlease chief jumps for Crown Estate top job

Dan Labbad to take Crown Estate chief executive role at start of 2020
2 days ago

Race starts for £2bn YORcivil framework places

Eight firms to share £2bn pipeline over four years
2 days ago

Green light for £150m Bolton Church Wharf regen plan

Muse approved to start demolition and work up details of scheme
2 days ago

Wills Bros wins £31.5m Maybole Bypass in Scotland

5.2km bypass on A77 in south west Scotland will employ 165 workers at peak
2 days ago

VINCI starts work on new £100m Birmingham hospital

Contractor gets underway on three-year build programme
6 days ago

Pay row set to escalate on HS2 enabling works site

Dispute set to intensify over rates paid by labour supplier
7 days ago

Four civils firms scoop £2.6bn flood and coastal framework

Kier breaks into Environment Agency preferred contractors list
7 days ago

Costain making engineers redundant at tech centre

Contractor cutting jobs at technology division it bought for £17m in 2016
7 days ago

Dozen firms win £500m City of London deal

Morgan Sindall, Osborne and Speller Metcalfe among winners
7 days ago

New £3m fund to improve construction procurement

Companies invited to bid for cash grants in CITB-led efficiency drive
7 days ago

Green light for vast Nottingham Boots Island scheme

Developer Conygar plans to build a 2m sq ft mixed-use scheme
7 days ago

Goldman Sachs bankrolls Brum’s tallest resi project

Builder Sisk can now start work on 42-storey Broad Street skyscraper
7 days ago

SME contractors agree 2.75% pay deal for workers

Annual pay increase will see hourly craft rates rise to £12.79
1 week ago

Lakehouse subbie goes after Sureserve for cash

Specialist wins adjudication award after contractor goes bust
1 week ago

Firms on alert for M4 Newport £185m enabling works

Bidders day planned ahead of July invitation to tender
1 week ago

Robertson hires Laing O’Rourke infrastructure ops director

Bryan Glass will head Robertson's civil engineering business in Scotland
1 week ago

Wates starts £24m Shoreham flood defence

Enabling works to pave way for 540-home Free Wharf scheme
1 week ago

£400m Eastern Highways Framework up for renewal

Essex County Council to invite bids for third generation framework in June
1 week ago

Contractor services