Lorne Stewart back in profit after three years of losses

Aaron Morby 3 years ago
Share

The holding group for building services specialist Lorne Stewart and Rotary Building Services has returned to profit after battling through several years of losses.

Accounts for Saudi Arabian-owned LSRM Holdings in the year to December 2021 reveal the Harrow-based group edged into pre-tax profit £420,000 after accumulating a total loss of over £20m in the previous three years.

Revenue slipped by 7% to £124m, due to the continuing impact of the pandemic.

Over the year headcount was reduced again by around 100 to 653 as the business was streamlined to meet Covid operational challenges.

Among the key trading arms, the main M&E business Lorne Stewart improved on last year recording a £630,000 operating profit on revenue down 10%  at £118m, compared to a £600,000 loss in 2020.

The much smaller Rotary Building Services delivered a £200,000 profit on revenue slumped to £3.8m from £9.5m.

Chief financial officer, Ramesh Krishnamurthy, said that despite the challenges and project delays cause by Covid, the business had improved cash generation, giving year-end net cash of nearly £16m, up from £14m previously.

He added that the company was working to expand its order book within the principles of strict financial risk management.

Krishnamurthy said: “Margins remain a challenge at all levels of the supply chain making insolvency a high risk at client level as well subcontractor/ supplier level.

“The company is therefore vigorously maintaining compliance with its criteria for any new clients/supply chain.”

Latest news

Rayner unveils £39bn plan to build 300,000 social homes

Council building revival and rent reform feature in social and affordable homes plan
3 hours ago

Keltbray bounces back with £3.2m profit

Tighter controls and smarter project selection fuel strong turnaround
3 hours ago

VINCI JV wins 500-home twin town centre revamps

Chester Northgate phase 2 and Northwich Weaver Square schemes move to delivery stage
3 hours ago

80 energy projects unlocked as Ofgem backs grid expansion

£24bn energy networks deal gets green light from regulator
1 day ago

How to see your stories on the Enquirer

Join our Suppliers and Buyers directory to get your news published
3 hours ago

Henley lands Midland Mill revamp on Leeds tower scheme

Restoration of 18th-century mill kicks off on South Bank regeneration project
3 hours ago

New boss at Eric Wright Civil Engineering

Gavin Hulme takes top job as Diane Bourne moves to group role
11 hours ago

Pinewood submits £1bn data centre plan

Studio giant adds green and learning spaces to tech hub blueprint
1 day ago

Record results after TClarke goes private

Britain's biggest M&E contractor flourishes after de-listing
1 day ago

Dalkia lands £200m nuclear maintenance deal

1,000 nuclear FM staff to join M&E contractor
1 day ago

Construction comeback to outpace wider economy

Arcadis forecast fueled by spending review optimism
2 days ago

First steel goes up on giant car battery site

Severfield gets to work on McAlpine Somerset site
2 days ago

Permasteelisa wins cladding deal on Bovis city tower

Facade specialist lands package at 60 Gracechurch Street
1 day ago

Fox buys recycled asphalt specialist Fisher

Acquisition adds major recycled asphalt capacity in north west
2 days ago

Major Building Safety Regulator shake-up to end tower delays

HSE stripped of control and top fire chiefs brought in to fast-track stalled schemes
2 days ago

Hinkley trio sign Sizewell civils deal

Balfour,Bouygues and Laing O'Rourke form Civil Works Alliance for new power station
2 days ago

£3.9bn data centre plan for Ravenscraig steelworks

Green energy to power massive new steel to silicon AI campus
2 days ago

Breakthrough on HS2’s second longest tunnel

8.4 mile Northolt to Old Oak Common drive completes
2 days ago

Neilcott on fast-track to debt-free employee ownership

£22.5m loan nearly paid down after big profit year
2 days ago

TfL kicks off race for £700m Tube station upgrade

South Kensington and Elephant & Castle top the pipeline list
2 days ago

Corbyn Plant Hire fleet goes under the hammer

Kit to be sold off by sister firm to collapsed groundworks contractor
2 days ago

Government wields procurement stick on late payment

New rules would block slow payers from bidding on big public jobs
5 days ago

Hercules buys power line labour firm for £15.7m

Labour supply specialist snaps up Advantage NRG to tap booming electricity upgrade market
5 days ago

Universal bid to fast-track planning for theme park

Entertainment giant eyes 2026 start at Bedford site
5 days ago

Developer Breck to transform former Ibstock brick factory

Ravenhead works to become 300-home development
5 days ago

SP Energy Networks awards contracts worth £1.4bn

First round of awards under £5.4bn national electricity grid upgrade programme
6 days ago

Travelodge to convert Liverpool Street office building

Office-to-hotel conversion in City of London
5 days ago

Plans lodged for 1m sq ft City of London office

Barbican landmark building will reuse 40% of existing structure
6 days ago

PTSG acquires roofing specialist HD Sharman Group

Premier Technical Services Group expands building maintenance division
5 days ago

Balfour Beatty lands £833m carbon capture power plant job

Work to start later this year on Teesside carbon capture gas-fired power station
6 days ago