Business

Construction giant McLaughlin & Harvey is building for the future

CONSTRUCTION giant McLaughlin & Harvey put a torrid 2015 behind it to swing back into profit last year - and it came on a reduced turnover.

The Mallusk-based firm, which has worked on mammoth schemes ranging from the new Ulster University campus in Belfast to the realignment of the M2 in Monaghan, posted a profit of £2.7 million in 2016 compared to a loss of £11.7m in the previous 12 months.

Group turnover was down by around 10 per cent from £273.8m to £247.2m, according to figures published at Companies House.

But stronger profitability on contracts and tighter control of costs resulted in a significantly improved trading performance.

And the directors say they are "encouraged" by the current order book and tender opportunities for 2017.

McLaughlin & Harvey has been in the building and civil engineering and property development sector for more than 160 years, operating across Britain and Ireland.

Its current live projects include input in the redevelopment of London Luton Airport (a scheme with an overall cost of £57 million), Omagh Hospital (£65m) and the new critical care unit at King's College Hospital in London (£68m).

The company operates in various sectors including healthcare, education, industrial, retail, sporting venues, transport infrastructure, marine and rivers, energy, commercial, and leisure, and it has a strong commitment to delivering quality cost effective solutions for clients within a safe, considerate working environment.

As well as growing its construction and civil engineering work, it is also increasing its facilities management (FM) services and has carried out work in this area for retailers including Marks & Spencer and Waitrose in Britain.

A strategic report filed with McLaughlin & Harvey Ltd's results says: "Combined with the positive contributions on current projects, a return to historical profitability levels is anticipated."

It added: "The fundamentals of the business remain strong, with a balance sheet showing net assets of £26.9 million and group cash at the end of the year of £35 million.

"While market conditions continue to be highly competitive, the ongoing investment to further develop the business through the UK, allied to the retention and growth of our skills base, will ensure strong growth in the medium term."

The company (its managing director is Philip Cheevers) has a Northern Ireland workforce of 427 staff, which gave it a wages bill of £21.1 million.

Two years ago the directors formed a group company, McLaughlin & Harvey Holdings, comprising its two main firms - McLaughlin & Harvey Ltd in Belfast and a Trench Holdings Ltd in Scotland.

Combined, it generated a turnover of £427.1m and had a profit before tax of £5.5m.

Its overall group workforce has risen to 803 and the group payroll cost is £42.5m.