Contracting group Graham, which has extensive operations throughout Scotland, has reported a second year of revenues in excess of £1 billion but profits edged downwards amid "significant" headwinds across the construction sector.
Figures for the year to the end of March show a 2.8% increase in revenues to £1.13bn in what chief executive Andrew Bill said was a strong performance in the face of economic uncertainty and inflationary pressures. These challenging circumstances eroded pre-tax profits to £14.8 million, down from £15.1m previously.
The construction sector is far from alone in the battle against higher costs and labour shortages. The industry has gained a bit of breathing space in recent months as these pressures have eased somewhat, but the stability needed for profitable growth remains elusive.
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The company, which is headquartered in Northern Ireland, operates across a number of sectors including building, civil engineering, interior fit-out, facilities management, and development management. Mr Bill said Graham's focus on strategic supply chain management and "selectivity" in procuring new contracts has secured the group a record pipeline of work worth more than £2bn.
"The market has been challenging but our consistent focus on quality delivery and commitment to securing repeat business through the development of collaborative client relationships have allowed us to grow sustainably over the past year," he added.
"Looking forward, we have developed a significant pipeline of opportunity to allow us to positively approach the next 12 months, and beyond, with energy and optimism.”
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The latest S&P Global UK Construction PMI for May rose to 54.7, the highest reading over the neutral 50.0 mark in two years, as supply chain conditions improved amid greater availability of stock. This contributed to a slower pace of input cost inflation and strengthening business confidence across the sector.
However, the industry continues to feel neglected with a recent survey of more than 500 construction professions revealing that just 3% believe the manifestos put forward by political parties ahead of this week's general election have addressed the most serious issues facing the sector.
These include the need for more domestic production of building materials and a greater focus on remedying crumbling infrastructure, which is impacting transportation and logistics. Skills shortages and late payments also remain critical challenges.
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