Daniel Contractors back in black
WARRINGTON-based construction firm Daniel Contractors swung back into profit in 2011 despite a 14% drop in sales to £117.5m (2010: £136.8m).
Accounts for the year to September 30 state that the company’s sales were hit by the cancellation of a major construction contract, coupled with a delays to proposed infrastructure projects by major customers.
However, chief executive Andrew Ball said measures taken during the prior year to reduce overheads had paid off in terms of improving margins.
He added that the group had achieved a number of milestones during the year, including renewal of a term maintenance contract with Welsh Water and gaining new work from Severn Trent and United Utilities. As a result, its utilities arm ended the year with a forward order book of £268.2m, compared with £40.8m in the prior year.
Meanwhile, its energy and marine division had an outstanding order book at its year end of £46.9m (£32.7m).
Ball said: “Considering the prevailing conditions in the UK economy and uncertainties in the world commodity markets, particularly in oil & gas, the directors are satisfied with the performance and the continued strategic development of the business.”
By the year end, net assets increased to £10.4m (£9.4m), although the company’s net debt climbed to £1.8m (2010: net cash of £986,000).
