The financial year ending 31 March 2019 saw revenues at Graham stabilise at £735m, after a number of consecutive years of growth
Graham also posted a profit before tax of £8.2m (1.1% of revenue).
Graham will continue its focus on the delivery of quality projects, with strong cash generation. This will be achieved through selective bidding, working with repeat clients and partners, alongside appropriate risk transfer.
Michael Graham, Graham group executive chairman, said: “Graham continues to be in a strong financial position. First and foremost, these latest accounts indicate stability, particularly as we recorded profits across all of our divisions. This will provide us with a solid platform to continue to grow sustainably.
“We have also produced a healthy balance sheet, with strong cash balances of £63m and no trading debt. Our intent is to continue to invest in the balance sheet to ensure that we can be selective about the projects we work on and the partners we work with.
“Our focused approach to work winning has accounted for our current order book of £1.2bn together with a strong presence in multiple frameworks, which will help maintain the group’s healthy balance between public and private work.
“This leaves us well placed for 2020 with strong levels of secured work, and a forecast revenue of £875m.”
Forward Momentum
The publication of the latest accounts coincides with the launch of Graham’s new business strategy entitled “Forward Momentum”.
This five-year vision is fully aligned to the company’s guiding principle of “delivering lasting impact” and reflects its ambition to improve productivity and embrace modern methods of construction.
It also demonstrates Graham’s commitment to operating as a business which has a positive impact on the planet, place and people.
Michael Graham explains the aims behind Forward Momentum. He said: “Under Forward Momentum, the Group will look to continue its sustainable, organic growth with an optimum business size of £850m-900m.
“We also want to be known as a business defined by the quality of our projects rather than the size of our revenue. So far, we have been very successful in this regard as quality has differentiated us, and we believe it will continue to do so.
“To maintain this standard, we will continue to significantly invest in training, systems and processes to ensure we get it right first time on site whilst ensuring Graham is a safe, accident-free place of work.
“2020 should also see Graham return to the top quartile of industry profitability with margins in excess of 3%.
“Importantly, we also want to be a great place to work and strengthen our reputation as an attractive employer in the industry. This commitment is reflected in our investment of over £1m in employee Learning and Development in 2018, while we continue to substantially invest in developing industry-leading initiatives around employee wellbeing and mental health.”
