A family-owned contractor in Northern Ireland aims to expand its construction activities after seeing its turnover rise by 35 per cent last year.
Heron Bros recorded revenue of £154.6m in its latest accounts for the year ending 31 August 2023, generating a pre-tax profit of £11.6m.
These figures represented an increase on the previous year’s turnover of £114.2m and pre-tax profit of £11m.
But the modest profit rise meant the contractor’s margin shrank from 9.6 to 7.5 per cent. This was still healthy given the average margin for CN100 contractors last year was 2.7 per cent.
In his strategic report included with the accounts, executive chairman Damian Heron said his firm will expand its construction and energy divisions. “We continue the pursuit of niche markets, residential developments, strategic joint ventures, and developments in conjunction with the company’s property division,” he added.
Heron acknowledged “continued uncertainty at a local and national level” as the effects of Brexit, the Covid pandemic and the ongoing war in Ukraine “continue to create inflationary pressures on the market”.
But despite these pressures, Heron Bros has continued to focus on digital transformation as part of its Vision 2030 strategy. “There has been significant ongoing investment during the period in the ERP [enterprise resource planning] system and other IT applications,” Heron said.
The firm held no short- or long-term bank loans and it ended the financial year with £29.9m of cash in the bank. It paid out £2.3m in dividends.
Headcount increased from a monthly average of 305 staff to 317, meaning that the firm’s annual wage bill grew from £13.3m to £14m.
Heron Bros has experienced mixed fortunes since the period covered by the latest accounts. Last November, the firm suffered a setback when it lost the £140m Casement Park stadium job in Belfast.
Construction News reported that the client, the Ulster Gaelic Athletic Association (GAA), abandoned a main works contract with Heron Bros and Buckingham Group after the latter collapsed in September 2023.
In January 2024, however, the firm announced a trio of contract wins. Two are in Northern Ireland – the £70m Ballycastle Shared Education Campus and the £52m Dundonald International Ice Bowl.
The other deal will see Heron Bros deliver the £30m Edinburgh Innovation Hub for a joint venture between East Lothian Council and Queen Margaret University.
