Lorne Stewart back in profit after three years of losses

Aaron Morby 3 months ago
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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.”

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