Bad debt takes gloss off improved annual numbers
Byrne has been forced to write off nearly 拢2m as a bad debt following Ilke Homes鈥� collapse over the summer which took the gloss off an improved set of annual results.
The concrete frame specialist, whose businesses also include fit-out firm Ellmer, said the modular housing specialist鈥檚 administration in June meant its groundworks business O鈥橩eefe racked up a 拢1.9m bad debt as a result.
Byrne bought civils firm O鈥橩eefe Group out of administration in summer 2022 and said that turnover in its first full year of trading hit 拢45m with an operating profit of 拢2.9m. But it said this number was 鈥渉eavily impacted鈥� by the Ilke Homes collapse.
The bad debt blunted the rise in overall pre-tax profit at the business, which was up 6% to 拢6.8m in the year to June on turnover up 25% to 拢191m.
Byrne, which has been owned by South African builder Wilson Bayly Holmes-Ovcon since 2017, said its concrete arm had been hit by 鈥渧ery turbulent market conditions鈥� which saw revenue drop 11% to 拢65m and operating profit slip from 拢4.7m to 拢2.5m, a fall of 47%.
Ellmer鈥檚 revenue edged up 2.5% to 拢82m but operating profit was up 42% to 拢2.4m with the firm鈥檚 current schemes including work at Google鈥檚 new headquarters in King鈥檚 Cross and luxury apartments at the Peninsula hotel in London鈥檚 Belgravia.
Cash at the bank dropped from 拢46.6m to 拢24.1m while the average number of monthly staff at the business during the year rose to 340 from 219, a jump of 55%.
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