Essex-headquartered family-run construction company, Mulalley, has published its latest financial results.
Turnover for the year ended 31 March 2024 was £172.5 million, down from the £193.3 million achieved in the previous financial period, generating a pre-tax profit of £566,000 (FY2023: £3 million).
This decline was primarily driven by headwinds in Mulalley’s New Build division, where turnover contracted by 11.77 per cent.
Its forward order book, however, reached a robust £860 million, which it said signified a ‘promising future for the business’.
“While turnover and profitability have reduced, we have sustained profitable operations, with major increases in future workload secured in lower-risk sectors at levels of return commensurate with our traditional trading targets,” said Mulalley.
Adding: “With the increased risks now seen in major residential developments, the company has decided not to bid on any future Local Authority development schemes until its current projects are completed.
“However, we are revisiting existing schemes where we believe we can provide additional homes.”
Mulalley reported an operating profit this year of £1.1 million, compared to the £3 million generated in the prior financial year.
It said the result underscored ongoing competitive pressures, supply chain fragility, high inflation, reductions in positive cash flow and the impact of reduced turnover on profitability.
Profit for the year was £428,000, down from £2.4 million in the prior trading period, and at the year-end Mulalley had net assets and total equity of £48.7 million, compared to £51.2 million the year before.
The total distribution of dividends for the period was £3 million, paid to the parent company.
Mulalley’s main services include residential development, design & build, traditional construction, property refurbishment and maintenance.
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