THE Covid pandemic has slammed the brakes on construction giant Graham becoming Northern Ireland's latest entrant into the exclusive "billion pound club", despite what it says was a “resilient and positive” financial performance in the year to March 31.
Following a number years of unbroken growth, Graham had been widely tipped to take its sales beyond £1 billion by 2022 or 2023.
But the Co Down contractor's latest published accounts reveal that overall revenue fell back by £45 million to £808.1 million compared to 2020, though profit before tax still rose by 7.5 per cent to £12.33m (it operated on a 1.5 per cent margin).
Significantly each of its main business units - building, civil engineering, interior fit-out, facilities management and investment projects - remained profitable throughout this latest accounting cycle.
Cash in hand also rose by more than £40m to £118.9m, which has allowed Graham to improve its supplier payment statistics.
The damage to turnover was done right at the onset of the pandemic, when the entire construction industry adjusted to government restrictions and guidance. In the three month period from April to June 2020 sales plummeted by 42 per cent (around £100m) against pre-Covid forecast levels.
In an effort to protect its 2,200 staff, Graham initially availed of the government's furlough scheme, but when market conditions stabilised, it repaid the grants it received from July 1 2020.
Those employees who had their salaries reduced to further insulate the business were repaid in this financial year, and as a further acknowledgement of their efforts, every Graham colleague received a gratitude payment.
Looking forward, Graham has secured a record work pipeline of £1.7 billion.
Group executive chairman Michael Graham said: “These accounts are hugely positive in what was without question a challenging period for every contractor in the construction industry.
“In such an unprecedented time for wider society, our priority was simultaneously ensuring the health and safety of all of our people while protecting the future of our business. A sensible, pragmatic leadership approach has helped us to achieve these twin objectives.
“Throughout the pandemic, our staff, supply chain and subcontractors have gone above and beyond. I want to thank each of them and their families for their immense efforts.”
