The Hertfordshire group’s pre-tax profit dropped to £2.7m in the year to October 2021, down from £5.8m previously as the pandemic and inflation dragged down profitability.
The concrete arm A J Morrisroe + Son accounted for around two-thirds of the revenue growth, with joinery specialist Houston Cox Central contributing 15% and Cantillon Demolition 11%.
Chief executive Brian Morrisroe said: “Some deterioration in margin was experienced as a result of being caught in fixed priced contracts with inflationary pressures in relation to labour and materials.
“Despite this, the group has been able to maintain profit albeit at a reduced margin of 7.5%.”
At the end of the trading year the group’s work pipeline amounted to £238m, with sales forecast for this year to be stable at around £200m.
Morrisroe said it had set aside £720,000 in the period to cover expected fines to be handed down to Cantillon, which it bought in July 2020, following the firm’s involvement in a demolition bid-rigging ring uncovered by the Competition and Markets Authority over a period extending from 2013-2017.