Midgard drives recovery at JRL Group

Aaron Morby 2 weeks ago
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Diversified construction group JRL has recovered from a pandemic dip delivering strong revenue and profit growth at its main contracting business Midgard.

Major hotel near Old Street in London being delivered by JRL Group companies
Major hotel near Old Street in London being delivered by JRL Group companies

In a year of recovery, JRL also expanded from its south east territory winning major projects in Birmingham and Manchester as it sought to reduce dependence on the private residential market in London and the south east.

Chairman John Reddington said: “The build to rent sector is flourishing in the UK and we have a significant presence in the sector, we are well placed to benefit from further growth in BTR in coming years.

He added: “Self delivery remains central to our business and we strive to deliver a complete construction solution with key specialist packages delivered by our in-house divisions. Our integrated model appears to be gaining support.”

Overall revenue was up 7% to £610m in the year to December 2021 although pre-tax profit remained flat at £27m, dented by losses on facade packages.

While the main contracting, M&E and dryling package businesses showed profit growth last year, concrete business J Reddington saw profitability fall sharply to £800,00 from an £8.3m pre-tax profit in 2020.

The unitised facade business, McMullen Facades, and general cladding contractor, UK Facade, both fell into the red, suffering a total loss of £17.4m because of poorly performing contracts.

In its latest accounts, JRL Group revealed it had set aside around £4.5m for remedial work on legacy projects, where discussions are ongoing with third parties.

Net debt reduced last year from £41m to £15m reflecting improved cash generation.

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