Contractor says rising costs hit bottom line
The country鈥檚 second biggest steelwork contractor slipped into the red last year as price increases took their toll on William Hare鈥檚 bottom line.
The firm, which is behind only Severfield in terms of income, posted a pre-tax loss of 拢2.2m from a pre-tax profit of 拢2.4m last time.
Hare, which has recently carried out work on the Factory arts scheme in Manchester being built by Laing O鈥橰ourke as well as Mace鈥檚 Paddington Square office block in London, said turnover in 2021 was up a quarter to 拢240m.
But the firm said 鈥渟ignificant prices increase throughout the cost base鈥� helped drag it into the red, adding that the war in Ukraine had heaped more increases onto costs. The firm鈥檚 net cash at the year end was 拢19m, down from 拢24m in 2020 while staff numbers remained flat at 1,761.
It said its order book was 鈥渆xtremely strong鈥� and added: 鈥淚t is encouraging that quality projects continue to come to the market and the array of opportunities remain.鈥�
Meanwhile, listed steel firm Billington said income climbed 22% to 拢46m in the six months to June with the firm seeing pre-tax profit jump 71% to 拢1.3m.
Chief executive Mark Smith said: 鈥淲hilst macroeconomic headwinds are likely to remain for some time, particularly with regard to material availability, price volatility and continuing inflationary pressures, we are seeing a consistent stream of opportunities at better margins.鈥�
Smith said he now expected the firm, which posted an 拢83m turnover last year and pre-tax profit of just 拢200,000, to beat market forecasts for its full year results.
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