Profit falls at roofing firm BriggsAmasco

Profit has dropped by over two fifths at roofing specialist BriggsAmasco after a number of project delays.

The latest financial results for the Sandwell-based firm show that pre-tax profit before exceptional items fell last year from £5.3m to £3m on turnover that declined from £44m to £37m, a drop of almost 16 per cent.

However, profit was impacted by an exceptional cost relating to changes to one of the company’s pension schemes. Taking that figure into consideration shows that profit dropped less steeply – from £5.3m to £3.1m.

The firm, which was tenth in the CN Specialists Index for envelope contractors last year, attributed the fall in turnover partially to the overrunning of some of its jobs.

“The reduction in turnover for the year… is largely on account of completion of several exceptional projects and project delays in the South East,” it said.

But it said that continuing success in winning contracts resulted in work in hand at the end of last year of just over £19m, down only 8 per cent on 2023, which it said boded well for this year’s prospects.

“The diverse project portfolio and client base provide excellent visibility for continued strong performance in 2025,” it said.

The balance sheet showed net assets slightly up from £21.1m to £21.3m, while the firm’s cash balance also rose from £7.9m to £8.8m.

Last year saw the completion of the first phase of a buyout of the firm’s pension scheme, whose liabilities will now be funded by an insurance policy, meaning the firm would no longer need to make scheme
contributions, it added.

While it was still exposed to raw material price fluctuations, BriggsAmasco said it minimised those risks at contract award through forward purchasing and only entering into contracts that allowed for price adjustments after an initial fixed-price period, as well as securing firm cost agreements with suppliers.

“Given our current scale, further hedging is deemed uneconomical, though this policy will be reviewed if our operations change significantly,” it said.

The firm, which has been in operation since 1865, has been involved in high-profile projects including waterproofing work on the redeveloped Battersea Power Station and the new Stratford campus of the London School of Fashion.