Kilnbridge ‘restructures’ amid slump in profits

While turnover for the year ended 30 June 2024 fell to £85.8 million from £120 million the year prior, the business generated a pre-tax profit of £1.4 million, down from £3.8 million in FY2023.     

Kilnbridge transitioned to an Employee-Owned Trust (EOT) in 2021; Owen Dannatt was appointed CEO in summer last year, taking over from Dermot McDermott who became executive chairman after 33 years at the helm. 

And, although the business was impacted somewhat by the cancellation of the Northern and Euston leg of HS2, Kilnbridge ended the year with a strong balance sheet and had been reviewing its structure to manage risk. 

“This work is still in progress, and the intention is to build on our solid foundation and make the changes necessary to allow us to scale the business sustainably,” a financial statement reads. 

It added: “We recognise our value in focusing increasingly on projects where we can bring our specialist skills and capabilities to bear.  

“This approach allows us to take appropriate commercial risks while offering competitive risk transference for our clients.” 

At the year end, Kilnbridge had net assets and total equity of £17.1 million, up from £15.8 million the year before, with increased cash reserves of £10.4 million. 

However, the London-headquartered contractor turned in an operating profit of £1.3 million, down from £3.7 million recorded the year before, and profit for the year of £3 million, compared to £6.1 million the year prior.  

The directors recommended and paid an ordinary dividend of £1.7 million (FY2023: £6 million), however no final dividend was recommended. 

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