Supply chain failures have contributed to Ardmore Group posting its first loss in more than seven years.
“After seven years of the group consistently reporting operating profits, 2023 ends that run in what has been a challenging year, particularly for the construction group of companies,” said Ardmore.
Adding: “Reflecting on the events that have contributed to the disappointing results, we can point largely to three factors: supply chain inflation, supply chain failures and some poor management.”
Revenue for the South East contractor for the year ended 30 September 2023 was £403.1 million, down from £435 million in the prior period.
This was due, in part, to difficulties building momentum on four key jobs and delayed contract awards, Ardmore said.
The group reported an operating loss of £11.6 million (FY2022: £6.4 million profit).
Gross profit was also down, from £28.2 million in FY2022 to £7.5 million in FY2023.
Ardmore reported a pre-tax loss of £10.7 million, compared to a £6.5 million profit in the previous financial period. Its loss for the year was £10.8 million (FY2022: £5.1 million profit).
Net assets were valued at £64.7 million, compared to £67.5 million in the previous period.
No final dividends were approved in the period or the one prior.
Outlook
The family-owned company said achieving £400 million turnover in 2024 should be possible, owing to a strong order book which includes five contracts worth £530 million.
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