Business

O'Hare & McGovern reports £5.6m loss after 'challenging' contract in Britain

O'Hare & McGovern recently started work on an extension of Quays Shopping Centre in Newry
O'Hare & McGovern recently started work on an extension of Quays Shopping Centre in Newry O'Hare & McGovern recently started work on an extension of Quays Shopping Centre in Newry

BUILDING firm O'Hare & McGovern saw a 60 per cent surge in turnover last year - but reported a £5.6 million loss after a contract in Britain ran into difficulties.

Latest financial for the Newry-headquartered company recorded sales of £109m in 2015.

The family-owned business provides construction services across the private and public sectors in the UK.

But while revenue took a huge leap in the year, the firm had losses of £5.6m before tax.

It represented a massive 12-month swing after a £3.6m pre-tax profit in 2014.

"Profitability was impacted by issues related to design procurement and supply chain challenges on a contract in GB", the directors said.

However, they added: "The company's order book remains strong with turnover remaining at current levels. The company expects to return to profitability in 2016."

On average, the company employed 170 directly in the year (compared to 136 in 2014).

That pushed its wage bill to just shy of £8m while directors received £488,134 with the highest receiving £111,843.

In keeping with many of the north's other best known building firms, O'Hare & McGovern garners a large proportion of its revenue in Britain.

However, it is also involved in several high profile contracts in Northern Ireland.

That has included the redevelopment of Windsor Park football stadium and the conversion of John Bell House in Belfast city centre into student accommodation.

And earlier this year, the company was awarded the contract to build a new £20m film studio at Giant's Park on the city's north foreshore.

Other current projects including the building of new offices for Concentrix at the site of the former Maysfield Leisure Centre while it has just started work on a £20m extension of the Quays Shopping Centre in Newry.

O'Hare & McGovern started in 1972 and is still run by its founding members.

The company is a wholly owned subsidiary of Carnbane House Limited.

In separately filed accounts, it showed a 50 per cent rise in turnover to £117m with a loss before tax of £4.2m.