Draperstown construction firm still eyes expansion despite profit slump

PRE-TAX profits at Londonderry construction firm Heron Bros dropped by a third to £8.6m in the 12 months to February 2018, new accounts have revealed.

After reporting one of the most successful years in its 60year history last December, turnover at the Draperstown-based company dropped 21% to £74.6m in its latest financial year.

While the 2017 figures were inflated by the sale of a subsidiary company, Heron Bros’ latest accounts show it did benefit from a significant interest payment from its investment in renewable energy business, Simple Power Ltd.

Heron Bros has since sold the wind firm, which had 52 turbines in its portfolio, to London-based investment fund Foresight in a deal announced in October.

The company’s operations include construction, joinery, manufacturing, building supplies, quarrying, property investment and property development.

A total of 248 people are employed across the group, which is led by managing director Damian Heron ( left).

A report from the directors of Heron Bros, released with the new accounts, show the firm considered 2018 a year of consolidation following “significant expansion” in the year to February 2017. The report said: “During this period the board introduced changes to the company’s workforce, structures, operational procedures and audit controls to consistently identify, evaluate and effectively manage the risks the company is exposed to.”

However it revealed that Heron Bros is preparing for further expansion in 2019, albeit focused within the UK.

“With continued uncertainty at a local and national level and to avoid spending troughs, the company will have a renewed focus on the UK market,” it said.

“We are however encouraged by a strong balance sheet, order book and opportunities for the year ahead.

“This will be done as always, in a controlled manner to ensure key issues such as health and safety, customer service, business reputation and margin are not compromised in any way.”

The report further adds that they intend to expand on Heron Bros’ current development model.

The latest accounts show that Heron Bros spent £500,000 more on its staff last year, with its wage bill standing at £9.9m.

The directors praised the firm’s “loyal and long-serving workforce and management team who continue to work efficiently to increase market share and maximise margin”.