Recovery from lows
Graham posts profit and repays furlough support
Michael Graham: ‘a very positive performance’
A strong recovery from the lows of the first lockdown enabled building contractor Graham to post an increase in profit and repay the furlough support it received from the government.
Despite a difficult start to its financial year from April to June last year, the company posted a 7.44% rise in profit before tax to £12.33m for the 12 months ending 31 March 2021. This was achieved despite a £45m fall in revenue to £808.1m.
Cash at the bank and in hand increased to £118.9m (2020: £72.9m) which allowed the company to improve its supplier payment statistics.
Each business unit – building, civil engineering, interior fit-out, facilities management and investment projects remained profitable throughout this latest accounting cycle.
In early 2020, the onset of the Covid-19 pandemic created uncertain operating conditions and led to a reduction in productivity as the entire construction industry adjusted to government restrictions and guidance.
Revenue between April and June 2020 was reduced by 42% (c.£100m) against pre-Covid forecast levels.
Graham received support for more than 2,200 staff – including 300 in Scotland – through the UK government’s Coronavirus Job Retention Scheme and as market conditions stabilised it was able repay the furlough grants from 1 July 2020.
All employees who had their salaries reduced from April to June 2020 in order to further insulate the business were repaid and received a gratitude payment.
Looking forward, Graham has secured a record work pipeline of £1.7bn.
The delivery of this portfolio coincides with the launch of a new corporate social responsibility strategy, which is aligned to the UN Sustainable Development Goals.
Michael Graham, group executive chairman, stressed the importance of the collective efforts of the workforce as key to the group’s performance.
“The published accounts are very positive. Without question, this has been a particularly challenging period for every contractor in the construction industry. This makes our latest financial figures even more impressive.
“Throughout the pandemic, our staff, supply chain and subcontractors have gone above and beyond. I want to thank each of them and their families for their immense efforts.”