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.”