Creagh Concrete posts £6.2m loss after taking £4.2m hit from major contract
OFF-SITE precast manufacturer Creagh Concrete took a £4.2 million hit on a large UK contract last year, new accounts show.
The Toomebridge-based company said it was a major factor in the £6.3m after tax loss it posted for the year ending September 2021.
The precast concrete specialist, run by brothers Gerard, Seamus and Patrick McKeague, recorded a turnover of £102m for the 12 month period.
The company previously posted a turnover of £157m for the 18 months to September 30 2020.
A turnover of £95.6m was recorded in 2019.
Despite a higher turnover than its last full reporting year without Covid-19, Creagh said the pandemic had significantly impacted its growth trajectory.
The company had anticipated sales of £200m by 2021.
In response, the company said management undertook a full operational and risk review “leading to efficiency gains, supported by price increases which has returned the company to profit”.
Chief executive Seamus McKeague said the firm has “acted swiftly” in response to increased energy and raw material costs by increasing its prices.
Creagh has also recently landed its largest contract to date. The £26m deal with Vastint will see it construct three apartment blocks in London using Creagh’s ‘Rapidres’ precast system.
Mr McKeague said it reflects the ongoing demand for the company’s engineering skills and the calibre of its sales and estimating teams.
“I am confident that we have a robust strategy in place and are on track to deliver our budget for the 2021/22 financial year,” he said.
“Our products and services are in high demand and our order book is healthy, with a solid pipeline of opportunity supported by our reputation for innovation and great people which continues to drive our strong client relationships.”