Midgard drives recovery at JRL Group

In a year of recovery JRL also expanded from its south east territory winning major projects in Birmingham and Manchester as it sought to reduce dependence on the private residential market in London and the south east.

Chairman John Reddington said: “The build to rent sector is flourishing in the UK and we have a significant presence in the sector, we are well placed to benefit from further growth in BTR in coming years.

He added: “Self delivery remains central to our business and we strive to deliver a complete construction solution with key specialist packages delivered by our in-house divisions. Our integrated model appears to be gaining support.”

Overall revenue was up 7% to £610m in the year to December 2021 although pre-tax profit remained flat at £27m, dented by losses on facade packages.

While the main contracting, M&E and dryling package businesses showed profit growth last year, concrete business J Reddington saw profitability fall sharply to £800,00 from £8.3m pre-tax profit in 2020.

JRL Group trading firms
Group businesses listed with revenue over £10m
Profit 2021/20 Revenue 2021/20 Service
Midgard £14.5m £6.4m £457m £404m Tier 1 builder
J Reddington £0.8m £8.3m £316m £253m RC frames
Ark M&E services £12m £6.2m £105m £74m M&E services
McMullen Facades -£6.8m -£1.9m £65m £54m Glass facades
UK Facades -£6.6m £0.6m £19m £53m Envelopes
JRL Drylining £3.6m -£1.9m £22m £20m Drylining
London Tower Crane £7.2m £9.7m £38m £38m Tower cranes
Thames Reinforcements £3.6m £1.3m £63m £43m Steel fabrication
JRL Plant & Logistics £0.2m -£2m £45m £43m Plant hire
JRL Environmental £0.02m -£1.1m £16m £14m Waste recycling

The unitised facade business, McMullen Facades, and general cladding contractor, UK Facade, both ran into the red, suffering a total loss of £17.4m because of poorly performing contracts.

It its latest accounts JRL Group revealed it had set aside around £4.5m for remedial work on legacy projects, where discission s are ongoing with third parties.

Net debt reduced last year from £41m to £15m reflecting improved cash generation.

 

 

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