Belfast-based firm Lagan Construction Group has revealed a significant surge in profits in the year to March 2016
Lagan Construction Group has seen its profit almost double in the year to March. The firm, which is based in Belfast, revealed a 74 per cent leap in pre-tax profits to £7.6m in this period.
Financials for the firm also revealed sales of £225.6m, which was up 11.6 per cent on the £202m seen in the previous 12 months.
In their strategic report for Companies House, directors said: “Despite the challenging market conditions, the group has managed to maintain acceptable margins whilst also carefully managing the level of overheads.”
Revenue growth expected
While the firm said they “expect the global and national economic environments to impact on the overall construction sector, the group is well position to achieve its objectives of revenue growth and maintaining profitability through good revenue visibility and a strong order book”.
The firm was founded in 1962 and was split in 2010 to form Lagan Construction Group and the Lagan Group. It has dealings in both Ireland and Britain, mainly in infrastructure, capital and maintenance projects in both the public and private sector. Currently, the firm is working on the construction of a triple-decker roundabout in north Tyneside and the second phase of the new Ulster University Belfast campus.
Last year, it expanded its operations further by taking over H&J Martin. This saw staff numbers increase from 510 to 527, and the group’s overall payroll bill rose from £23.3m to £25.3m. The acquisition of H&J Martin protected some 900 jobs and has been profitable for the firm, seeing £60,000 operating profits recorded in the year to March. The previous year the firm saw losses of £5.7m. This followed a reduced turnover of £47.6m for the year, which was less than half the figure seen in 2015 of £98.5m.
Lagan joins a number of firms reporting profit gains. Earlier this year Barratt Developments reported it had seen the highest number of completions for eight years, which led to pre-tax profits increasing 20.7 per cent. Baratt’s balance sheet grew 217.43 per cent to £592m in 2016.
