£26m drop in turnover for N Ireland builder
Published: 05 January, 2012
MAGHERAFELT: Henry Brothers, one of Northern Ireland's largest building firms has said a big drop in annual turnover is because it has stopped submitting heavily discounted bids for contracts.
In 2011 it made pre-tax profits of £580 000 on turnover of £28m compared to 2010 when pre-tax profits were £1.1m on turnover of £54m.
The firm's directors said some of their competitors are bidding for work at "unsustainable levels resulting in negative margins."
A note in the accounts states: "The directors will be more selective in targeting tender opportunities where they are confident of a positive return.
"The basis of this decision was to defend the company's balance sheet whilst providing sufficient activity within the business to retain key staff until more profitable work became available."
Henry Brothers (Magherafelt) is the largest company in the Henry Group. Group turnover for 2011 was £37m producing pre-tax profits of £688,000. In 2010, turnover was £64m and pre-tax profits £1.5m.