Year to 31st October 2024 Morrisroe Group Limited saw its sales drop 15% to £187m (2023: £219m), a drop attributed to high interest rates impacting project viability and planning delays.
However, it made a pre-tax profit of £710,000, representing a turnaround after the previous year’s loss of £1.3m.
Turnover is expected to return to its usual £200m+ levels in 2025, aid by such projects as a new main stand for 2025 FA Cup winners Crystal Palace Football Club, for which Morrisroe is currently engage on a pre-construction services agreement.
Morrisroe has been appointed by main cantractor Lendlease to provide demolition and enabling works, installing 400 piles ranging in diameter from 350mm to 900mm, as well as groundworks, reinforced concrete works and the installation of precast terracing for 13,000 seats at the Selhurst Park stadium in south London.
Morrisroe also has major subcontract packages on the Rosalind Franklin Building at the University of Cambridge – delivering a six-storey concrete structure over an existing service tunnel – and at the Natural History Museum Collections Store in Shinfield. Morrisroe’s client in both cases is main contractor Mace.
On the latter project, Morrisroe is currently providing enabling and piling works ahead of building a four-storey post-tensioned concrete frame. It had initially been designed as a steel structure before value engineering. With the project heading way beyond the museum’s budget, Morrisroe’s alternative solution was peer reviewed by Ramboll as well as independent structural engineer Arup prior to adoption by the client.
Chief executive Brian Morrisroe wrote in the annual report: “Our performance in 2024 was a step in the right direction, Our structures business was able to improve its results, as ‘legacy’ fixed price contracts were largely traded through to completion in the third and fourth quarters, while more recently secured projects have performed well.
“As in previous years, there have been strong performances from our joinery businesses, as well as piling and haulage, and this has enabled us to trade into profit. Although our demolition business fared less well in 2024, suffering a drop in sales, we are nevertheless reporting a gross margin of 8.5%, which is a significant improvement on previous years and demonstrates the strength in the diversity of our business model with its diverse revenue streams.
“We have focused on the things that make the business sustainable, controlling overheads, remaining debt free and maintaining a good working capital base. We have purchased additional plant assets in the period funded by a finance facility. Our cash position has also improved. Our net assets have accumulated through profit retention and a conservative dividend policy, and this has provided further strength in our balance sheet.”
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