Results for the year to 31 March 2021 and trading update
Trading conditions in the year to 31 March 2021 proved challenging, particularly the significant impact of COVID-19 and to protect our employees all business activity was effectively paused for two months at the beginning of the financial year.
For that two-month period all employees, except for the Managing Director, were registered on the Government Furlough Scheme to recover 80% of their pay up to the monthly limit, however, the company continued to pay staff 100% of their contracted pay. Since 1 June 2020 all employees have returned to full working on a scheduled basis as the business could accommodate them safely and the business has operated well.
Turnover in the year to 31 March 2021 reduced by over 25% to £17.1 million (2020: £23.5 million) and operating profit reduced by over 35% to £0.7 million (2020: £1.08 million).
Nick Coley commented: ‘Our strong balance sheet and good level of cash reserves with no borrowings, ensured we were able to weather this short-term contraction of business and to retain key staff and our skilled workforce. This has ensured the business is well placed to take advantage of the upturn in activity in the Civil Engineering sector. We are confident that trading will recover to pre pandemic levels in 2021/22 with 90% of our budgeted turnover already secured. With a significant pipeline of future works we are confident our forward strategy of steady controlled growth can be delivered’.