Tyrone modular building firm McAvoy Group posts £1m loss
NORTHERN Ireland off-site building specialist McAvoy Group has pointed to Brexit and political uncertainty as it recorded a loss of £1m in its latest results.
The group, which is based in Dungannon, also reported a 25% fall in sales from £59.9m to just under £45m. Its loss of £1.1m in the year to the end of October 2018 compared with after-tax profits of £3.5m a year earlier.
The business, which is led by chief executive Eugene Lynch, manufactures and sells and hires out off-site modular buildings for sectors including healthcare, residential projects and education.
The directors explained the loss in a strategic report accompanying the results. “Caution in customer decision-making with regard to project start-up, impacted by both political and
Brexit uncertainty, is the principal factor involved,” it said.
It added that despite the Brexit uncertainty, its outlook for the 2019 financial year was better.
“Key projects within our core education sector focus are ‘in contract’ and progressing.
“The directors consider longer-term progress is underpinned by the continued investment in sector growth development reflected by success within the health and residential sectors in particular.”
It said that over the 12 months to the end of October, it had also spent significantly on its first project entry into the residential sector, which included research and development.
The directors said the firm is engaged in its biggest ever healthcare projects as it works on a new £15m wing at Northumbria Specialist Emergency Care Hospital in Cramlington, England. It’s also developing its first off-site residential system after winning its first off-site housing contract.
But despite the fall in sales and pre-tax profits, employment numbers rose from 196 to 217.
Its net assets were £8.6m, compared to £10.3m a year earlier. The group said it met its day to day working capital requirements through bank overdraft facilities.