Demolition firms seess turnover rise but profit fall.
DEMOLITION firm G O'Brien & Sons Limited added nearly PS3m to its turnover last year, but failed to convert its growth into profit.
The Boldon-headquartered firm saw its turnover grow 25%, from PS11.6m in 2016 to PS14.5m for the year ending April 2017.
But despite the boost, operating profit fell by PS31,000 to PS631,000. The firms profit after tax was halved from PS837,000 to PS370,000.
Speaking in the company accounts, director Gordon O'Brien said; "Turnover has grown since 2016, which is due to some large demolition contract wins, and the associated sales of scrap and architectural salvage.
"Gross profit margin has fallen slightly since the previous year, however, it is a fluctuating measure, dependant on a number of factors.
"Commodity prices and the mix of contracts can have a significant effect on gross profit margin."
O'Brien's core demolition business achieved the majority of the firm's growth, with revenues rising from PS8.1m to PS10.2m. However, the firm's machine hire arm suffered, with sales falling from PS226,000 to just PS87,000.
The company hired an additional 18 production staff, taking its total head count to 84. The growth led to O'Brien's employment costs increasing from PS1.7m to PS2.1m.
Meanwhile, directors at the firm received a total of PS205,366, up from PS174,972 in 2016.