John F Hunt’s pre-tax profit declined after inflationary pressures saw its margin narrow from 6 to 4.4 per cent.
The second-largest demolition specialist in the UK reported a £7.9m pre-tax profit in the year to 31 March 2024, which was down on the £9.5m profit from the previous year.
In its latest group accounts, directors said a combination of inflation and “general contracting risk” had a £2.5m effect on its bottom line, despite continued efforts to “manage risks effectively through controlled management of contract and commercial risk”.
Turnover rose to £179m in comparison with £157.1m the year before, though.
The firm’s cash reserves fell to £31.2m from £33.7m, and its short-term bank loan debt doubled from £237,631 to £481,686.
The overdraft is repayable on demand and secured by a fixed and floating charge over all the assets of the company, the accounts said.
John F Hunt’s average monthly headcount grew from 471 to 492 employees, resulting in a £2.3m increase in the annual wage bill to £30.8m.
The group’s biggest focus is its demolition business John F Hunt Ltd, which delivered a pre-tax profit of £1.6m from turnover of £89.2m.
“Tender levels remain strong with a number of major tenders being submitted in 2023/24 resulting in a number of significant contract awards. The company has a significant amount of secured workload heading into 2024/25,” the accounts stated.
The group’s regeneration and remediation arm reported turnover of £78.4m, which the accounts described as an “acceptable” result.
John F Hunt’s hire services arm posted turnover of £12.7m, although the accounts said the asbestos consultancy business had a “difficult year”, with a £30,000 loss from turnover of £5.1m.
Other group businesses focus on diamond cutting, web design and structural engineering.
John F Hunt did pay out a dividend of £515,500, though that was down on the £690,700 it paid in the year before.
Giving their outlook, the directors said they expected the firm to maintain its turnover and margin in the current financial year.
“The directors are confident that the portfolio of services provided either by discipline or geographical location will provide significant opportunities for the group in both the construction and nuclear decommissioning sectors,” they added.
The accounts also pointed to a “number of significant contract awards” secured during the year. It added that the firm’s varied services portfolio should provide “significant opportunities” in both the construction and nuclear decommissioning sectors.
John F Hunt became an employee-ownership trust last October, after the period covered by the latest accounts.
