Winvic Construction has published a trading update for the year ended 31 January 2023 – reporting higher turnover but lower profit after incurring losses on two key projects.
“The business has included losses within these results on two major projects secured prior to the Covid-19 pandemic,” said the Group in its financial statement.
“These projects suffered from the effects of Covid and high levels of inflation on costs.”
Adding: “The business believes it has now written these projects back to a secure position.”
Unpredictable price increases in raw materials over the last 12 months had also impacted the Group’s margins, it said.
Highlights
- Turnover: £1.217 billion (FY2022 £1.029 billion)
- Gross profit: £51 million (FY2022 £49.2 million)
- Operating profit: £10.9 million (FY2022 £16.4 million)
- Profit before tax: £11.1 million (FY2022 £16.5 million)
- Profit for the year: £9.1 million (FY2022 £13.5 million)
- Net cash: £105 million (FY2022 £101 million)
Net assets (including profit and loss account) and shareholder funds were valued at £45.6 million (FY2022 £47.9 million).
75% of its turnover was from repeat business with clients across three key sectors.
The Group had a forward order book valued at £1.28 million.
Its forecasted turnover to January 2024 is £950 million.
“Winvic Group Ltd has delivered another year of strong financial performance for the year ending January 2023, despite challenging market conditions,” said the Group.
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