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Fri September 18 2020

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Sisk sounds confident on back of strong 2019

5 Aug John Sisk’s UK division has posted results for 2019 showing strong growth in profits and turnover, and appears confident of riding safely through the Covid crisis.

Chief executive Steve Bowcott
Chief executive Steve Bowcott

For the year to 31st December 2019, John Sisk & Son Ltd made a pre-tax profit of £5.0m (2018: £3.2m) on turnover up 23% to £418m (2018: £323m).

Gross profit margin was 5.2% (2018: 4.7%).

During 2019 Sisk completed the International Convention Centre Wales at Celtic Manor, topped out  the first two commercial buildings of Circle Square in Manchester and reached key milestones on its two residential projects for Quintain at Wembley Park in London. It also completed the handover of the Boeing Goldcare Hangar at Gatwick Airport.

New projects for the year included a mixed development for Rockwell at Canary Wharf, the new Isle of Man Ferry Terminal Building in Liverpool, civils work at York Central and the tram extension project in Blackpool.

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Last month Irish parent company Sicon reported a pre-tax profit of €31m for 2019 on group revenue up 19% to €1.4bn.

Chief executive Steve Bowcott wrote in the annual accounts of John Sisk & Son Ltd that the directors had confidence that the company was strong enough to withstand the economic fall-out of the coronavirus.

“Many of our projects have remained open …with enhanced social distancing health and safety measures in place to protect Sisk and third party staff who work on these sites,” he wrote. “For construction sites that have remained open through March and April 2020, they have not seen a material slow down in activity that would impact on the cost base of each underlying project. As a result, the directors believe that the most likely financial impact of Covid-19 on turnover will be to defer revenue from 2020 into 2021 due to the temporary closure and/or shutdown of live construction projects.”

He added: “The company has modelled various scenarios to assess the potential impacts of Covid-19 on the company’s activities and has considered reductions in company turnover from its budget levels ranging from 10% to 33%. Under a ‘worst case’ scenario at the top end of this range, there is no indication of a long-lasting impact on the profitability of the company, with underlying performance, controlled mitigations and the current strength of the balance sheet sufficient to support the company under this scenario.”

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