Modular building provider Portakabin has reported an increase in turnover and a modest drop in profit after acquiring one of its major competitors.
Turnover jumped 21 per cent to £476.1m in the financial year ending 31 December 2023, having been £393.4m in the previous year, while pre-tax profit dropped by £4.4m to £80.2m.
In April 2023, Portakabin bought the £80m-turnover Darwin Group, which specialises in modular healthcare buildings. Since the acquisition, Darwin accounted for £37.7m of its new parent’s annual turnover.
Portakabin carried forward £182m in net borrowings into 2024 after investing £163m in hire fleet, offering a £59m net consideration for Darwin and paying £30m in dividends.
In a strategic report accompanying the results, the company said it aimed to grow its market share by being a “safe, responsible, sustainable and efficient business”.
Most of the firm’s turnover was from UK activity, although just under a third – £143.9m – came from overseas.
Portakabin said it would invest in fleet and infrastructure in the coming year, while targeting further growth across Europe.
The average headcount increased by 199, from 1,911 to 2,110. It is likely that much of the rise is attributable to the acquisition of Darwin Group, which had about 200 employees at the time of the sale.
After the end of the reporting period, the firm demerged from its parent company Shepherd Building to a new entity, Portakabin Holdco Limited. Pacific Bidco Limited, indirectly owned by private equity firm Antin Infrastructure Partners, bought the new company’s entire issued share capital in June 2024.
The pattern of rising turnover and lowering profits echoed the experience of many firms in Construction News’ annual CN100 ranking, published yesterday. Portakabin appeared for the first time in this year’s table, swooping in at 54.
Portakabin was founded in 1961 and has become synonymous with temporary buildings in the past 60 years. It sells and rents out its buildings for a range of uses, including site accommodation, classrooms and healthcare facilities.
