Gilbert-Ash has blamed inflation for a 65 per cent fall in its pre-tax profit.
The Northern Ireland-based contractor grew its turnover for the fifth year in a row in 2023, with a 1.5 per cent increase to £267m, according to accounts filed at Companies House.
However, Gilbert-Ash saw its its pre-tax profit fall by almost two-thirds, from £4.5m to £1.5m, in the year ending 31 December 2023. The group’s pre-tax profit margin therefore fell from 1.7 to 0.57 per cent.
It comes just days after mechanical and electrical specialist Simm revealed its family owners pumped £4m of their own money in after trading was hit by the same market conditions.
In a business review published alongside the numbers, Gilbert-Ash managing director Ray Hutchinson said: “Profits are in line with expectations as, throughout 2023, the construction industry continued to contend with significant external pressures, including unprecedented inflation which impacted input costs.”
Hutchinson said that the contractor “remains vigilant to changes in the economic outlook”, adding that the company “maintains a robust financial position”.
He added that the firm “continues to build a full portfolio of successful construction projects across a growing range of sectors including education, arts and culture, hotels and leisure, and workplace, with a high a number of highly prestigious project wins and completions in 2023”.
The firm has delivered work for a range of sectors including offices, residential, student accommodation and leisure. Projects won included a £29.8m contract to redevelop the Tate Liverpool art gallery in the city’s Royal Albert Dock.
Gilbert-Ash employed an average of 200 staff in 2023, up from 199 a year earlier. The group paid an interim dividend of £174,250 during the year.
