Home International News Ardmore Group reports £10.8m loss

Ardmore Group reports £10.8m loss

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Ardmore Group reports £10.8m loss

The business thus slumped to a pre-tax loss of £10.8m from 30 September 2023 in comparison to a £6.5m profit in the prior year. According to managing director Patrick Byrne, this firm has been affected by the increasing cost of materials and labour, which destroyed all parts of the construction supply chain in contract fixed and raised the company’s autolysis. Although Ardmore achieved its second-highest level of activity at £403m (£435m: As indicated in (2022), it was £28 million shorter than the board’s desired amount of £448 million, reports Contract Journal.

In the recent accounts, Byrne said “problems generating traction on four core jobs and delayed contract awards” were both factored into the revenue underachievement.

He added: “Though inflation has reduced the margin among all jobs, the supply chain failures have negatively affected the margins on three major projects. Two of the three recovered well from the failures, but one went far south of the mark; the latter was reformed following an internal audit, and several structural changes were made to prevent its repetition.”

As indicated by Byrne, manufacturing activities had gone slow concurrently with the construction projects; nevertheless, he said the recent laurels were likely to change the situation. After a poor performance and five recent contract wins worth £530m, the group’s order book has increased to £5bn, enabling Ardmore to maintain revenue of around £400 million this year. The cash was also down from £ 56m to £ 40m in 2022.

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