Cost inflation pushes McLaughlin & Harvey to a loss

For the year ended 30^th June 2023 McLaughlin & Harvey turned over £737m and made a pre-tax loss of £8.6m.

The operating loss was £8.0m.

The annual report sets out the reasons: “The directors are disappointed with the performance of the group throughout the financial year but accept that the industry as a whole continues to face volatile trading conditions impacted by the lingering impact of covid delays. Geopolitical turbulence on prices and availability within the supply chain and labour shortages witnessed in the UK.

“The directors recognise the financial performance is disappoint. However, the group has seen the benefit of the diversity within its core operations during the year. While the construction business saw record annual turnover levels as it serviced a pipeline of profitable work with reputable and reliable clients in the period, the Northern Ireland construction business had to provide for potential losses on a small number of jobs. These jobs were significantly affected by the severe inflation encountered after the group had entered into contract. We are engaging positively with our clients to minimise the financial impact of these loss making jobs and to recover the provisional losses provided for in the accounts.”

The environmental business reported a loss of £2.2m having been impacted by a change in Scottish landfill tax legislation on the first day of the financial year. Due to the resulting loss of trade, this necessitated a rationalisation of assets and the closure of al but one site.

McLaughlin & Harvey is owned by 88-year-old Ken Cheevers and family. The owners took out a dividend of £2.2m for the year (2022: £2.1m).

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