O’hare and Mcgovern posts profit amid ‘chal­leng­ing en­vi­ron­ment’

Belfast Telegraph - Business Telegraph - - News - BY RYAN MCALEER

CON­STRUC­TION firm O’hare and Mcgovern has re­ported pre­tax prof­its of £1.4m for 2017 as it ex­pressed con­cerns con­cerns over “a chal­leng­ing busi­ness en­vi­ron­ment”.

In a year in which Newry com­pany O’hare and Mcgovern has re­struc­tured the way it re­ports its fi­nances, the fam­ily-run firm re­ported a turnover of £95.8m for the year to De­cem­ber 31, 2017.

It’s slightly down on the £99.5m turnover the com­pany re­ported for 2016, though last year it re­ported as par­ent com­pany Carn­bane House Ltd.

Pre-tax prof­its were also sig­nif­i­cantly higher for Carn­bane House in 2016 at £11.1m.

Es­tab­lished in 1972, O’hare and Mcgovern pro­vides con­tract­ing ser­vices to lo­cal and cen­tral govern­ment, par­tic­u­larly in ed­u­ca­tion, health, leisure and hous­ing. It also works on projects for stu­dent ac­com­mo­da­tion, of­fices and re­tail.

Now group­ing its ac­counts un­der OHMG (Hold­ings) Ltd, a state­ment con­tained in a re­port made pub­lic over the week­end and signed by di­rec­tor Ea­mon O’hare stated: “Dur­ing the year the Carn­bane House Group re­struc­tured its ac­tiv­i­ties to bet­ter man­age the dif­fer­ing strate­gies, risk pro­files and fund­ing re­quire­ments of its con­stituent parts and re­gional mar­kets.”

The com­pany said it would not be mak­ing any fur­ther com­ment.

OHMG (Hold­ings) Ltd in­cludes sub­sidiaries O’hare and Mcgovern Ltd, O’hare and Mcgovern (Ire­land) Ltd, Carn­bane House Ltd and OHMG Ltd. While the con­struc­tion com­pany said it ex­pects to con­tinue to make a profit in 2018, it has out­lined some risks in the cur­rent en­vi­ron­ment.

“The busi­ness en­vi­ron­ment in which we op­er­ate con­tin­ues to be chal­leng­ing with the key com­mer­cial risks be­ing mar­ket con­di­tions, the un­cer­tainty sur­round­ing pub­lic ex­pen­di­ture lev­els, com­pet­i­tive pres­sures, costs of raw ma­te­rial and labour, and cus­tomer credit risk,” the re­port said.

“In­creased po­lit­i­cal and macro-eco­nomic un­cer­tainty fol­low­ing the re­sult of the EU ref­er­en­dum has added to these risks.”

The vast bulk of the par­ent group’s rev­enue (£93.6m) last year came from UK con­tracts, with £2.2m de­rived from work in the Repub­lic. The re­port states that the com­pany’s or­der book “re­mains strong with turnover re­main­ing at cur­rent lev­els”. It con­cludes: “The com­pany will main­tain prof­itabil­ity in 2018.”

O’hare and Mcgovern listed 167 mem­bers of staff on its books for the 12 months to De­cem­ber 31, 2017, slightly down on the 188 re­ported by Carn­bane House Ltd dur­ing the pre­vi­ous year.

How­ever, staff costs re­mained in the re­gion of £7.5m for the year.

A to­tal of £719,000 was paid out to di­rec­tors in 2017, with pen­sion con­tri­bu­tions ac­count­ing for around £30,000 of that sum.

The high­est paid di­rec­tor re­ceived re­mu­ner­a­tion of £100,000.

Com­pany di­rec­tor: Ea­mon O’hare

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