In the year to 31st December 2022, JRL Group generated turnover of £761.0m (2021: £609.1m) and made a pre-tax profit of £10.9m (2021: £24.9m).
That 1.5% net margin might be considered adequate for many construction companies but JRL was consistently making more than 5% in the pre-covid years. Even in 2020 and 2021 it was making more than 4%.
“2022 was a difficult year for the UK construction industry, inflation was at an all-time high. Thankfully, our in-house delivery model, whilst it does not fully protect us from inflation, it does save us from supply chain failures and excessive mark-ups,” said chairman John Reddington.
“We have been targeting commercial work in recent times and during 2022 our new team hit a milestone when we secured our second contract. This opens up further work for the in-house businesses: piling, groundworks, concrete frames, MEP and facades.
“Inflation has stabilised, we have a healthy order book and with a motivated team look forward to better results in the coming years.”
Star performer for the group was Midgard, the main contracting business formed in 2006.
Midgard made £25.3m before tax on revenue of £536.3m, compared to £14.5m on £456.8m in 2021. “Midgard continues to leverage the combined offering of JRL Group delivering increasingly complex and prestigious projects. In an increasingly uncertain environment, Midgard continues to demonstrate that self-delivery de-risks the programme and provides cost certainty. With a strong order book and the support of the wider group, the directors look forward with confidence,” Mr Reddington said.
J Reddington Ltd, the groundworks and concrete frame business, made a pre-tax loss of £1.6m on revenue of £396m, compared to a profit of £833,000 on revenue of £316m in 2021.
Thames Reinforcements increased revenue from £62.7m to £98.7m and pre-tax profit from £3.6m to £8.6m.
London Tower Crane Hire & Sales increased revenue from £37.7m to £39.7m but profit fell from £7.2m in 2021 to £4.7m in 2022.
JRL Plant & Logistics followed a similar pattern: revenue up from £44.5m in 2021 to £49.6m in 2022, but pre-tax profit down from £200,000 to £37,000.
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