FM Conway reports 50% leap in profit

Infrastructure provider FM Conway saw its pre-tax profit jump more than 50 per cent for the year ended 31 March 2021.

Pre-tax profit rose from £12.7m to £19.4m during the year, and was boosted by a £4.7m settlement regarding a land lease right that it agreed to give up. Revenue climbed from £325.7m to £338.2m.

The group’s chairman Michael Conway said: “The financial results of the year were encouraging, particularly in light of additional costs associated with the pandemic.”

He added: “The benefit of maintaining financial discipline means that the group retains a strong balance sheet to help us navigate a difficult economic outlook in the UK in the coming years.”

FM Conway had to shut down its manufacturing facilities and its asphalt plants in April of 2020 when the the pandemic struck. They had their operations and support teams stand down.

Other steps in the early, uncertain days of the pandemic included reducing number of people in line with reduced activity and unnecessary expenditure. The group said it did not reduce the salary of their staff with the aim to “avoid hardship” and retain its people. The company claimed £2.5m from the Coronavirus Job Retention Scheme for its furloughed staff. The group paid a £2.5m dividend to its shareholders.

The company was able to carry out investments in the year, with the firm buying surfacing contractor Topsfield Limited in March 2021. It also acquired Oades Traffic Management as part of their investment into digital asset management.

Looking to the future, the directors said: “Given the group’s order book and long-term contracts, we expect annual turnover to increase year on year.”

However, they said, the extent of this would be determined by how quickly the government will deliver its infrastructure initiatives and spending plans into projects that are deliverable. Profit margins could also be impacted by the rise in material prices, they warned.

Leave a comment