Readie Construction saw its revenue top £400 million in its latest results – but company profits were down on the previous year.
Turnover for the Essex-headquartered contractor for the year ended 31 March 2023 was £421.1 million, a 22 per cent rise on the £345 million reported in FY2022.
Gross profit was down from £13.8 million last year to £8.9 million this year, largely due to project delays and supply chain costs.
The operating profit result for Readie was also down, to £1.7 million compared to £5.5 million in the previous financial period.
Pre-tax profit was reported at £1.7 million (FY2022: £5.5 million), and profit for the year was £1.2 million (FY2022: £4.6 million).
Readie’s total income for the year ended 31 March 2023 was £1.2 million, compared to £4.6 million in the previous year.
The company’s cash position was reported at £12.2 million (FY2022: £11 million), and its net assets and total equity value was £1.8 million (FY2022: £1.2 million).
Dividends of £741,000 were paid in the year, compared to £5.7 million in FY2022.
At the time of reporting, Readie had secured £200 million of the £350 million revenue target it set itself for 31 March 2024.
Readie specialises in new build, refurbishment and fit-out projects in various sectors including industrial, logistics, retail and more.
The company transferred to an Employee Ownership Trust in March 2021.
Its full-time employee headcount was 260 this year, compared to 219 in FY2022.
‘Supply chain failures’
“Gross profit margin reduced to 2% in the year,” said Readie. “Whilst this is disappointing, there were a number of factors beyond our control that contributed to this deterioration.
“We had a number of projects that were delayed due to supply chain failures, incurring additional prelim costs to the business as well as additional costs to find replacement subcontractors at a higher cost.
“Inflation within the construction sector has been challenging and this has had an impact on margin, along with the return to more projects being competitively tendered, rather than negotiated.”
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