With revenue rising 36% to £767.6m (2017: £565m) and growth recorded across all divisions, pre-tax profits dipped from £16m last year to £13.1m, following increased investment in the business and "issues in the wider industry" following the collapse of Carillion.
Major construction milestones for the business include;
• Recent completion of the £55m 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 £55m waterfront apartment scheme on Strand Street in Liverpool for Patten Properties and Panacea Property Development joint venture
• A £113m student accommodation project for the University of York
• The £134m Baird Family Hospital and ANCHOR Centre development for NHS Grampian
• Securing a place on the £750m Clyde Commercial Framework as part of the Kier Graham Defence joint venture
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In addition, 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.
Elsewhere, the 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), £21m package of works in total. Other key civils work includes the £160m 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, Executive Chairman at Graham, said the business 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," he said.
"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."
(LM/MH)
