Banbridge firm Kane Group sees turnover fall by a quarter in 'satisfactory year'
A CO Down building services contractor has said it remains committed to long term growth despite seeing its turnover slump by a quarter and pre-tax profits fall dramatically over the year.
Kane Group Building Services, which has its headquarters in Banbridge, reported turnover of £34.6 million for the year ending March 31, compared to £46.3m in the previous 12 months.
Profit before tax also took a hit, falling from £2.88m to just over £1m. Gross profit margins have remained constant at 16 per cent.
The decline in turnover at the mechanical services contractor was primarily caused by reduced sales of almost £10m over the year, which fell from £39m to £29.2m.
Staff numbers increased from 103 to 118 over the same period, contributing to a 20 per cent rise in the annual wage bill to £4.6m.
In the strategic report accompanying the accounts, the company directors described it as a "satisfactory year".
"The company will continue to seek every opportunity to increase profitable turnover," they said.
"The directors are committed to long term creation of shareholder value by increasing the company's market share through organic growth.
"Further successful implementation of this growth strategy, combined with achievement of improvements in inventory management and overhead cost savings has resulted in the satisfactory results reported for 2018, despite economic conditions and the sector remaining highly competitive.
"The incoming year has shown that early results are satisfactory and the directors expect a year of continued progress."
Founded in 1967, Kane Group Building Services has grown into a multi-disciplined building services contractor.
In addition to the company headquarters in Banbridge, the firm further operates a London and Dublin office. Notable projects include a £25m apartment development in London's South Bank, the installation of the first laminar flow canopy system for an operating theatre in Northern Ireland at Craigavon Area Hospital and a contract at Dundalk racing stadium.