The GRAHAM Group, one of the UK and Ireland’s leading construction, facilities management and project investment businesses, has posted its 2017-18 financial results reporting strong growth and a record order book.
* The privately-owned Group’s revenues have increased 36% to £767.6 million in the financial year ending 31 March 2018 with growth across all divisions, up from £565 million the previous year.
* Profit before taxation stands at £13.1 million down from £16 million in the previous year but sits at a level that the Board is happy with following a year of extraordinary investment in the business and issues in the wider industry.
* Cash at bank and in hand has increased to £70.1 million, up from £66.6 million last year.
Michael Graham, Executive Chairman at GRAHAM, said: “Fundamentally, GRAHAM is in an excellent position. Each of our divisions has a record order book and a pipeline of opportunity that is strong in both volume and quality. Cash at bank and in hand has passed the £70 million mark with good operating cash flows which means that, among other things, we can ensure prompt supplier payment that will stand us in good stead for more sustainable growth.
“Margins have unquestionably been hit by some supply chain failures and knock on effects of a major contractor collapse, but we have ensured that every division has remained in profit and are happy with the end of year outcome given the challenging circumstances.
“Looking forward, we increased investment in the business during 2017/18, developing a guiding principle of ‘delivering lasting impact’ that reflects who we are and what we stand for. It formed the basis for a strategic rebrand – the first in 25+ years – and was rolled out nationally from the end of April. Our business has evolved significantly in the last 25 years and we’re really proud of the result.
“Most importantly, we continue to invest in our people, their skills and capability. In the last year we have received the Investors in People (IIP) Platinum standard and Wellbeing accreditation, the first contractor to achieve this in the UK, recognising our commitment to forward-looking, cutting edge people policies and practices and placing GRAHAM in the top 3% of recognised IIP organisations across the UK.
“We have also enhanced our digital capabilities through the investment in the digital construction team and digital FM offering.”
The business’s major construction work includes:
* Recent completion of the £55 million Grand Central Hotel in Belfast for Hastings Hotels
* A new commercial hub for start-up and SME businesses at the redeveloped Preston Barracks in Brighton for U+I
* A new £55 million waterfront apartment scheme on Strand Street in Liverpool for Patten Properties and Panacea Property Development joint venture (pictured below)
* A £113 million student accommodation project for the University of York
* The £134 million Baird Family Hospital and ANCHOR Centre development for NHS Grampian
* Securing a place on the £750 million Clyde Commercial Framework as part of the Kier GRAHAM Defence joint venture
Its facilities management team have recently been appointed by Scape Group and the interior fit-out division continues to work with Primark as well as recently being appointed to a Department for Work & Pensions framework.
Meanwhile GRAHAM’s civil engineering team has been working on bridges on the A47 in Norfolk, one of 68 schemes being delivered by GRAHAM as part of Highways England’s, OD East Package 2 (North), £21million package of works in total. Other key civils work includes the £160 million upgrade of A6 in Northern Ireland to a dual carriageway and a number of projects for Network Rail, including Bellenden & Westdown Underbridges in South London.
Michael Graham continued: “We are ambitious about what we can help achieve for a society that needs more homes, better hospitals, schools and infrastructure, first rate commercial space and leisure facilities – high quality projects that are built to last.”