London groundworks and concrete frame contractor Oliver Connell & Son has delivered another year of strong profit growth despite revenue dipping 8% to £131m.
Pre-tax profit at the business, established 50 years ago, jumped to £20.2m in the year to June 2024 from £10.6m previously, taking average margin to a record 15%.
James Connell, managing director, said the firm had benefitted this year from a clear focus on delivery against the challenging market backdrop.
“All our sectors – Construction, Aviation, and Infrastructure – delivered expected margins.
“The company has also benefited from very few contracts experiencing downside effects of the continued high inflation climate the industry has experienced in 2024.
Three generations: (l-r) James O’Connell with his father Pat who still is involved with the business. James’ son Seamus is now working as an apprentice at the firm
“The favourable timing of larger projects finishing and new ones starting has helped the business achieve expected margins on its projects.”
This improvement saw cash jump 81% in 2024 to £31.6m.
Last month, the board was strengthened with the appointments of finance director Daniel O’Donovan and David Heath as health & safety director
Connell said the firm was doing less in the now highly competitive high-rise residential sector and instead focusing on bridge structures, life sciences and data centre work for future growth.
It is presently working on around 30 jobs for 15 clients giving it a good spread of work.
He added the firm had finished the year with an order book of £167m (2023: £90m), putting it on track to hit £150m turnover in 2025.
