A surge in turnover enabled RMJM to report strong pre-tax profits for 2008 but the firm remains wary of challenging construction market
According to accounts filed at Companies House, the firm reported a 111 per cent increase in sales to nearly £100m of which £33.3m came from the US’ firm Hillier, which RMJM acquired in 2007.
Pre-tax profits for the year-end April 30 2008 rising by 97 per cent to £7.9m, with staff numbers rising from 700 in 2007 to 1,125 by the end of the financial year.
Regional operations in the UK contributed £19.2m, up more than 40 per cent from the previous period on a like-for-like basis.
In a statement accompanying the accounts, Michael Fraser, group chairman said ‘The current market for our services is indeed a challenging one. The liquidity pressures being felt by most businesses, and the construction sector specifically, have had the understandable if frustrating impact of slowing down existing developments and also delaying the conversion of a very healthy pipeline of prospects into contracts.’
The firm’s Middle Eastern branch in Dubai has been particularly affected with two rounds of redundancies having already taken place since November. This was in part due to the company relying heavily on the government-owned developer Sama Dubai, which has been forced to stall or cancel a number of major projects such as the $500m Jeddah Towers in Saudi Arabia.