Core UK business improves but rail sector problems blunt numbers
Flourishing business in Ireland and Canada helped North London contractor J Murphy & Sons back into the black last year after racking up more than 拢26m in losses in 2018.
The firm turned in a 拢1.1m operating profit in the year to December 2019 after the firm saw losses hit 拢26.7m the year before.
Overseas work was up 65% to 拢117.6m while turnover from its core UK and Ireland business was up 13% to 拢757.5m. Group revenue, which includes 拢5m of joint venture income, was up 13% to 拢880m.
The firm said its UK performance had improved 鈥渟ubstantially鈥� but results had been hobbled by several problem contracts in its home market, notably the rail sector. 鈥淭hese have been adequately provisioned and action plans are in hand to address,鈥� it said in its latest report and accounts which are due to be filed at Companies House later this month.
Murphy, which during the period won a 拢400m contract to deliver tunnelling and shaft work for National Grid and a 拢235m deal to refurbish Oxford Street for Westminster City council, both through joint ventures, said a revaluation upwards of investment properties and a 拢2.9m profit from the sale of a 50% stake in gas pipeline and electricity power line business Murphy Asset Services helped it to a 拢7m pre-tax profit from a 拢13m loss last time.
In the accounts, which were approved in the middle of last month, the firm said 鈥渘either Group operations nor work winning activity have been significantly impacted by covid-19鈥�.
Chief executive John Murphy added: 鈥淚t鈥檚 now important that governments make investment in infrastructure a priority, to help create jobs and rebuild our economies. We welcome the commitment made by the UK government so far, given the essential contribution the construction sector makes to keep our communities thriving.鈥�
The firm, which employs just under 3,500 people, had a cash balance of 拢71m at the year-end.
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