A Northern Ireland construction giant has posted strong pre-tax profits of more than £8m during a year which saw it undergo a major restructuring programme.
Northstone (NI) is part of one of Ireland’s largest businesses and has included three divisions — Farrans Construction, Northstone Materials and Cubis Systems.
However, the Dunmurry-based firm said in May 2023 it “carried out a major restructuring programme”. That saw it transfer some of the businesses into new legal entities, with Northstone (NI) now only trading as Farrans Construction.
It was reported in 2022 that Farrans Construction had been put up for sale by its Dublin-based owner CRH plc.
Then CRH chief executive Albert Manifold at the company AGM in April last year (left) with his successor, then chief financial officer Jim Mintern
Northstone (NI) posted pre-tax profits of £8.2m for the year ending December 2023, according to recently filed accounts.
During the same period, turnover stood at £512.5m, down slightly from the previous year.
That period includes five months of trading with all three companies, while seven months are based on Farrans Construction only.
John Wilson, chief executive of Northstone Group, told the Belfast Telegraph: “We have worked through a number of challenges in the past 12 months but have a healthy order book looking ahead with a conscious focus on growth sectors in the UK and Ireland.”
The number of staff sits at 1,049, according to the latest accounts, down from the previous year.
Northstone (NI) Ltd is a wholly owned subsidiary of CRH plc — a business employing around 79,000 people.
John Wilson, chief executive of Northstone Group
Speaking about the restructuring of Northstone (NI) in its latest accounts, the firm said: “As part of the restructuring, the trade, assets and liabilities of the materials, materials testing, and Cubis divisions were transferred out to separate legal entities… Northstone (NI) trading division is now only Farrans Construction.
“Market conditions continued to be very challenging.
“However, through the management of costs in a competitive environment, the company remained profitable during the period ending December 31, 2023, and together with strong working capital management the financial position at December 31, 2023, remains healthy.”
The business says the “outlook for 2024 is similar to 2023”.
In its previous set of accounts, Northstone (NI) said the impact of the war in Ukraine and inflation saw increased costs, such as energy and materials including bitumen, along with labour.
Speaking about its environmental impact, the firm says its parent company has a target to “deliver a 30% reduction in absolute carbon emissions by 2030 (from a 2021 base year), which is aligned to its ambition to be a net zero business by 2050”.
Breaking down its sales figures by region, the company saw a turnover of £402.2m in the UK, followed by £102.5m in the Republic, with the remaining in Europe and the rest of the world.
Towards the end of last year, it was announced that Bangor Marine, a partnership between Karl Group and Farrans, would start work on Marine Gardens in Bangor.
Marine Gardens will cover 5.25 acres and will include a new play park, two pavilions, kiosks with food and beverage offerings, an events space and associated landscaping.
Albert Manifold, CRH plc’s long-serving chief executive, stepped down from the position this month to be succeeded by Jim Mintern.
In 2023, the company moved its primary stock market listing from Dublin to New York.
News Catch Up: Monday 13th January