Building product manufacturer Alumasc has seen its revenue and pre-tax profit hit by the fallout of the Carillion collapse, the firm has said.
Revenue fell from £104.8m in 2016/17 to £98.4m in the latest results to 30 June. Underlying profit before tax fell to £6.5m, down from £9m the previous year.
Alumasc group finance director Andrew Magson told Construction News that the collapse of the contractor in January did not have a direct impact on the business, however subcontractors exposed to Carillion contracts had suffered delays on projects.
Mr Magson said: “We had no direct impact [from Carillion], but most of our sales sold through installation contractors and we had credit insurance against those, but some of those contractors were affected by bad debts and affected their working capital cycle, and impact caused project delays and getting on site.”
Alumasc chief executive Paul Hooper added: “The credit losses have had a massive knock-on effect across the industry, and banks certainly began pulling in credit limits for people. it was a structural effect across the industry. We were caught up in it.”
Alumasc stated that the firm is looking to improve quality of earnings through pro-active portfolio management, with the acquisition of Wade International for £8m in January expected to add to revenue in coming years.
Mr Hooper added that the firm had put in place contingency plans in case negotiations over Brexit failed to succeed, and the UK left the EU with no deal. He added: “Our roofing business exports into the EU, and we have roofing sourced from the EU – those companies have contingency plans in place.
“It [Brexit] is going to affect everybody in time, so we will have to be smart in passing on price increases. We will have to adjust accordingly; sourcing may be switched more into the UK.”