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Wed July 28 2021

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McAvoy returns to profit

7 Jul Modular building company The McAvoy Group looks to have returned to profitability for the first time since 2017.

Chief executive Mark Lowry
Chief executive Mark Lowry

The McAvoy Group has reported adjusted EBITDA of £2.4m for its latest accounting period covering the six months to 30th April 2021, with revenues of £23.8m – an increase of 30% year-on-year.

The headline figures herald a return to profitability for the privately owned offsite manufacturer; its modular hire and sales and its permanent offsite divisions were both profitable throughout the reporting period.

This is in contrast to the latest annual accounts filed by The McAvoy Group, which show a pre-tax loss of £6m on annual turnover of £36.7m for the year to 31st October 2020. And in 2019 it lost £15.1m on turnover of £56.7m. In 2018 it lost £1.8m before tax).

Those losses led to the McAvoy family losing control of the business to Blantyre Capital, the private equity vehicle of London financier Mubashir Mukada last year.

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Chief executive Mark Lowry said: “It has been a challenging period given the continued impact of Covid-19 and Brexit. Against that backdrop, it has been particularly satisfying to see the business continue its turnaround, recording a like-for-like rise in revenue and posting a strong adjusted EBITDA performance in our latest accounts.

“It’s a great result and is testament to the hard work and dedication of our team. As a leading offsite manufacturer covering the UK and Ireland, we are well positioned to capitalise on future opportunities and we look forward with a high level of confidence.

“We remain focused on winning viable projects across both modular hire and sales and our permanent offsite division. This is underpinned by the continued development of strategic partnerships throughout the various stages of the project cycle, from repeat customers through to design and key supply chain partners. We also benefit from a strong track record in winning work through frameworks, which positions us well for 2022 and 2023, with strong levels of secured revenues.”

The McAvoy Group recently secured new education projects worth £39m to be delivered for the Department for Education. Recently completed projects include: the Timebridge Centre in Croydon; a new art, design & technology centre at The Deepings School in Peterborough; Tattenhoe Community Hub in Milton Keynes; and Antrim Area Hospital’s new urgent care centre.

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