The London-based construction and specialist trades group posted pre-tax profit of £2.9m for the 11 months to 31 March 2026, compared with a £49m loss in the previous 16-month reporting period.

Chairman John Reddington declared the contractor had emerged from a period of “stabilisation, consolidation and quiet rebuilding” backed by a record £2bn-plus order book of projects from London to Birmingham and Manchester.

But he cautioned that rebuilding consistent, sustainable margins remained “the work of the years ahead”.

Operating profit recovered to £8.6m from a £35.5m operating loss, reflecting tighter bidding discipline and the completion of legacy problem contracts. Turnover for the shortened reporting period, now aligned with IJM’s financial year, was £573m, equivalent to an annualised run rate of around £625m.

The results mark the first reporting period since IJM injected £50m of equity into the business last year in exchange for a 50% stake.

JRL said tighter front-end pricing, stronger risk controls and enhanced project governance had transformed performance, while its vertically integrated delivery model was proving a key differentiator in winning complex schemes.

Across the operating businesses, flagship main contractor Midgard swung from a £15m loss to an £11m profit before tax on £410m of revenue, while Midgard City moved into profit with £2.6m before tax.

Concrete specialist J Reddington also recovered, posting £4.9m profit against a £7.2m loss a year earlier.

Not every division returned to profit. McMullen Facades, Ark M&E, Thames Reinforcements and JRL Drylining all remained loss-making, although most significantly reduced their deficits following restructuring and operational changes.

The balance sheet also strengthened, with net assets edging up to £115m following last year’s recapitalisation and selective property disposals. The group ended the period with net debt of £51m and cash of £105m.

Looking ahead, JRL said its priority is disciplined delivery of the record order book, rebuilding margins and embedding the tighter governance introduced alongside IJM’s investment.