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Oliver Connell & Son reports surge in profits

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Oliver Connell & Son has returned a record profit margin and solid balance sheet after investing in leadership at all levels of the business and successful risk management on project delivery. 

Pat Connell, chairman.

The family-run construction business generated a pre-tax profit of £20.2 million for the year ended 30 June 2024, well ahead of £10.6 million in the year prior, and against £130 million turnover (FY2023: £142 million). 

Operating profit in the year surged to £19.5 million (FY2023: £10.8 million), with all key market sectors (construction, aviation, infrastructure) delivering margins as expected and an overall average project profit of £20.3 million (+15 per cent). 

It said the result was due to the board taking a more cautious view of projects tendered in the year, focusing instead on the successful delivery of existing projects and building its forward order book. 

“The priority was to deliver all our projects safely, sustainably and profitably, rather than potentially increasing the risk profile by hitting an arbitrary turnover target,” said the board. 

“The board’s view was with resource constraints in terms of labour and a still uncertain inflationary outlook, its focus would need to be on the successful delivery of our existing projects and forward order book.” 

Oliver Connell finished the year with an order book worth £167 million (FY2023: £90 million) and is already forecasting turnover of more than £150 million for 2025 owing to a promising pipeline in the renewable energy and data centre markets. 

Left to right - Seamus Connell, Pat Connell, Patsy Connell and Thomas Connell.

READ MORE: From organ transplants to rocketing revenues – how two brothers built Oliver Connell & Son 

During the year, the company also benefited from very few contracts suffering downside effects from continued high inflation. 

Favourable timing of larger projects finishing and new ones starting also helped Oliver Connell achieve expected margins on its projects. 

At the year end, the balance sheet showed cash reserves up 81 per cent to £31.6 million (FY2023: £17.4 million) and net assets up 35 per cent to £29.5 million (FY2023: £22.3 million). 

The business reported a year-end profit of £15 million, a significant increase on the year prior (£8.3 million). 

Over the last five years, Oliver Connell has invested substantially in senior leadership. 

Recent appointments include Daniel O’Donovan – finance director, and David Heath – health and safety director, along with new senior appointments at site level. 

The company has also invested substantially in plant, which allows it to internally supply more than 60 per cent of its requirements. 

Was this interesting? Try: Clancy reports record turnover of £378m         

If you have a tip or story idea that fits with our publication, please contact the news editor rory@wavenews.co.uk 

The Oliver Connell & Son team on site.

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