Energy contracts knock Daniel’s profits

LOSSES associated with the energy sector contributed to a sharp fall in profits at the Warrington engineering group Daniel Contractors last year.

In the year to September 30 revenue fell 21.6% to £141.6m while pre-tax profits dropped 69% to £1m.

In their report the directors said this performance was broadly in line with expectations during a “very challenging” year. The bottom line was affected by losses incurred on a number of contracts in the energy sector.

These were not detailed but director AA Ball said: “This situation resulted in a major review of procedures and contract controls in the business. Going forward we are confident that improvements made in this area will ensure that this situation is not repeated.”

The company, which employs more than 1,300 staff, provides onshore and offshore pipeline engineering works to the oil, gas, and water markets. It also carries out civil engineering work and is involved in the construction of power stations.

It was set up by the brothers George and Conal Daniel in 1994. Conal died during the year which left the group with “enormous challenges” and led to three new appointments to the executive team.

“These changes have not only strengthened our exisiting executive team but have also allowed us to deliver a strong business performance, focusing on our four main business units,” added the company.

Future trading is strong, said Daniel, with orders in the pipeline worth £120m.