Steel specialist J&D Pierce Contracts Limited has reported a slump in revenue and profits despite large project wins and closely managing its operational risks.
Turnover for the year ended 31 December 2023 was £103.7 million, down from £195.2 million in the previous financial period, generating a pre-tax profit of £13.3 million (FY2022: £19.2 million).
However, it should be noted that the 2022 results above were across a financial term of 17 months, as opposed the 12-month period in 2023.
The Ayrshire-headquartered contractor, whose services cater predominantly to the steel fabrication and construction sector, generated an operating profit last year of £12.6 million, down from £19.3 million in the prior financial year.
“Whilst turnover in 2023 was down on last year (2022) as the market contracted, the company performed well with improved margins,” said J&D Pierce.
“A number of large projects were successfully secured and completed during the year and the order book remains strong into the new financial year.”
It said the main operational factors concerning the business are delays in commencing projects, which are ‘closely managed and constantly reviewed’.
Adding: “The greatest financial risk the company is exposed to is the insolvency of its key customers which is closely monitored at the outset and duration of each project.”
No ordinary dividends were paid during the financial period and the directors did not recommend payment of a final dividend.
However, net assets and total equity at 31 December 2023 were valued at £71 million, a healthy increase from £60.5 million the year before, with cash reserves up significantly, including pooled accounts, to £39.9 million from £17.2 million.
J&D Pierce’s profit for the year was £10.5 million, compared to £15.5 million in 2022.
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