Steelwork specialist J&D Pierce profits tumble

Turnover for 2024 dipped 5% to £98m, however pre-tax revenue plunged from £12.6m to simply £0.8m.

A tougher market noticed working margin collapse from 12% within the prior 12 months to beneath 1%, as value inflation in metal, coatings and vitality coincided with fewer massive high-margin jobs.

Managing director Derek Pierce stated the market did not ship the upturn anticipated.

“By the tip of January we knew it was going to be a troublesome 12 months as we had already had one massive contract cancelled and several other delayed or postponed indefinitely.

“This left important gaps in our manufacturing with solely restricted low margin work obtainable throughout the market to fill the slots.

“Sadly this regarded set to proceed all through the remainder of the 12 months which turned out to be the case.”

He stated the corporate, which is backed by Swedish funding group Storskogen, used the downturn to overtake methods, put money into new amenities, and sort out manufacturing bottlenecks.

A part of the funding centred on constructing new 480m-long, 350,000 sq ft coating plant in Bellshill, Glasgow, able to dealing with 1,500 tonnes of metal per week. The location consists of 24 new overhead cranes, automated blasting strains, and a 30-metre blast sales space.

The relocation of the paint store from Glengarnock has freed up fabrication area and added capability for one more 250 tonnes per week, stated Pierce.

“Regardless of 2024 being a troublesome 12 months, the corporate regarded to the longer term and invested closely. We’re prepared, stronger and extra environment friendly for the years forward.”

Money reserves dipped from £39.9m to £28.9m because the group funded the Bellshill undertaking and absorbed weaker buying and selling. Workers numbers rose to 522, up from 474.

Pierce warned that whereas tender exercise remained robust, rising enter prices and gradual undertaking begins would stay headwinds this 12 months.