Main contracting lifts Reddington turnover to £539m

Aaron Morby 9 months ago

Diversified south east construction group JRL has smashed the £500m revenue mark after another strong year of trading at its Midgard main contracting business.

Staff headcount at JRL jumped from 871 to 1,364 as revenue jumped
Staff headcount at JRL jumped from 871 to 1,364 as revenue jumped

Across the group, revenue jumped by nearly 40% to £539m last year, generating a pre-tax profit up £3.5m to £31m.

Growth was also helped by a £44m contribution from acquired cladding firm McMullen Facades.

But a £7m loss incurred by the cladding business in a challenging first year of trading at JRL depressed group operating margin from 7.3% in 2017 to 5.3% last year.

Chairman John Reddington said the group’s self-delivery model was paying off, reducing risk to programme and increased cost certainty for clients.

“Most notably Midgard, our main contracting division, has successfully delivered a number of larger contracts on time which continues to demonstrate the benefit of our integrated offering.”

“Managing growth represents a challenge in itself, therefore I am pleased to note that our balance sheet has strengthened further with net assets, cash at bank and net debt demonstrating the improvement in the group’s financial position.”

He added: “Against a backdrop of increased uncertainty in the wider market, we are pleased to confirm a healthy order book, which is currently indicating further growth into 2019.”

Of the two main contracting businesses, main contractor Midgard, which was formed in 2006, lifted revenue 66% to almost £300m, delivering a £14m pre-tax profit against £3.7m in 2017.

Groundwork and concrete frame contractor J Reddington edged up revenue to £246m with profit falling to £7m from £11m previously.

Group cash doubled to £62m over the year of growth.

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