Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Northstone profit stalls despite turnover hike in 2016

Farrans’ parent company Northstone has posted revenue growth of more than 40 per cent but legacy contracts weighed down its profit for 2016.

The Northern Ireland-based group, which includes contractor Farrans, reported turnover of £374.9m for the 12 months to 31 December 2016 – up 43 per cent on 2015’s £281.4m.

However, with profit before tax fell slightly to £4.34m in 2016 compared with £4.35m the year before, which the group attributed to legacy contracts.

The results left Northstone with a pre-tax margin of 1.2 per cent, down from 1.7 per cent in 2015.

In a statement accompanying the results, Northstone CEO Eamonn Sweeney said: “The reduced profitability largely resulted from the execution of construction contracts secured at a time of competitive pricing in the market.”

The company’s main areas of work – building, private development, contract management and civil engineering – reported the largest growth in 2016, with turnover up 53 per cent to £268.3m.

Revenue from road construction and quarrying meanwhile increased 42 per cent to £44.4m.

Staff numbers also grew at the contractor, with 155 people joining during the year, taking total head count to 1,146.

Construction News reported last month that a Farrans-Roadbridge joint venture was one of four bidders in the running for a £70m Scottish roads project.

In April Farrans secured the deal for an £85m pipeline project in Cumbria, also through a JV with Roadbridge.

Looking ahead to 2017, Northstone’s directors said they anticipated “modest growth, albeit at competitive margins.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.