{"id":822568,"date":"2025-01-28T06:11:29","date_gmt":"2025-01-28T12:11:29","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/01\/28\/prudent-approach-delivers-30-profit-hike-for-glencar\/"},"modified":"2025-01-28T06:11:29","modified_gmt":"2025-01-28T12:11:29","slug":"prudent-approach-delivers-30-profit-hike-for-glencar","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/01\/28\/prudent-approach-delivers-30-profit-hike-for-glencar\/","title":{"rendered":"Prudent approach delivers 30% profit hike for Glencar"},"content":{"rendered":"
\n

Logistics specialist Glencar has increased its pre-tax profit in its latest financial results, following a more selective approach to tendering.<\/p>\n

Releasing its latest annual accounts this morning (27 January) for the year to 30 September 2024, the St Albans-based contractor said that pre-tax profit rose by 30 per cent from \u00a33.3m to \u00a34.3m.<\/p>\n

However, turnover dropped for the second year in succession. After peaking at \u00a3417.8m in 2022 \u2013 marking a rapid ascent from \u00a3144.8m in 2020 and \u00a3160.7m in 2021 \u2013 Glencar\u2019s revenue slipped to \u00a3400.6m in its 2023 financial year and \u00a3400.3m in its new accounts.<\/p>\n

The firm was ranked 53rd<\/sup> in the CN100 2024 table of top contractors<\/a>.<\/p>\n

Explaining the reasons behind the improved margin and flatlining turnover, the accounts described 2024 as a year of \u201cbalance\u201d as Glencar adapted to \u201crapidly evolving and changing customer expectations and the needs of the market\u201d.<\/p>\n

Speaking to Construction News<\/em>, finance director Tom Tutty said the firm adopted a more selective approach to tendering, focusing on pricing fewer projects more strategically. This reduced risks and contributed to improved profit margins\u200b, he said.<\/p>\n

\u201cAs we mature [as a company], one of our focuses is trying to price less, but price it better…. If we\u2019re pricing the same amount of work as we had been three years ago, I\u2019m sure our turnover would have been higher, but I\u2019m not necessarily sure our margin would have been higher.\u201d<\/p>\n

Glencar co-founder Chris Gleave said the contractor had navigated the inflationary pressures on materials and availability issues faced by the construction industry in the previous year.<\/p>\n

\u201cWe seem to have washed through all of that, and that doesn\u2019t seem to be coming back to haunt us,\u201d he noted, adding that the firm has no struggling projects to affect its bottom line.<\/p>\n

Tutty said that Glencar had strategically diversified into higher-margin sectors such as data centres and life sciences.<\/p>\n

At 1.2 per cent, Glencar\u2019s margin was \u201cdefinitely still lower than we wanted to be\u201d, Tutty said. \u201cThe ambition would be to double or triple that\u2026 \u00a0I think that will only be achieved via selective tendering and new sectors.\u201d<\/p>\n

Within the logistics market, Gleave outlined new possibilities with \u201clast mile delivery\u201d in city centres, and also mentioned that Glencar was interested in the cut and carve refurbishment market.<\/p>\n

In its latest accounts, the firm revealed it was free of short- or long-term repayable bank loans, and cash at hand doubled from \u00a321.7m to \u00a343.8m.<\/p>\n

It did not pay out a dividend, compared with \u00a32.2m the year before.<\/p>\n

Average monthly headcount was up from 270 to 291 employees, and Glencar\u2019s wage bill rose by 20 per cent from \u00a318.5m to \u00a322.2m.<\/p>\n

Repeat business accounted for 65 per cent of Glencar\u2019s turnover last year, but Tutty said the proportion was lower this year as the number of first-time clients increased.<\/p>\n

One of these was Churchmanor Estates, which appointed Glencar to replace collapsed contractor Readie<\/a> on a life sciences building job near Cambridge.<\/p>\n

Looking ahead, Tutty said that Glencar aims to achieve turnover of \u00a3440m in the current year, but prudence is the watchword.<\/p>\n

\u201cWe don\u2019t just want to put all our eggs in one basket and then catch a cold,\u201d he said.<\/p>\n

Glencar\u2019s holding company also released its results today, revealing turnover of \u00a3406.8m, up slightly from \u00a3405.9m the year before.<\/p>\n

Pre-tax profit more than doubled from \u00a32.2m to \u00a34.8m.<\/p>\n

Commenting on these results, Glencar chief executive Eddie McGillycuddy said: \u201cWe have already secured a robust order book of \u00a3350m for 2025, with strong project margins.<\/p>\n

\u201cWe are targeting 10 per cent revenue growth in the next financial year, followed by 10 per cent in the following year.\u201d<\/p>\n<\/div>\n

Read More<\/a>
\n Ben Vogel<\/p>\n","protected":false},"excerpt":{"rendered":"

Logistics specialist Glencar has increased its pre-tax profit in its latest financial results, following a more selective approach to tendering. Releasing its latest annual accounts this morning (27 January) for the year to 30 September 2024, the St Albans-based contractor said that pre-tax profit rose by 30 per cent from \u00a33.3m to \u00a34.3m. However, turnover<\/p>\n","protected":false},"author":1,"featured_media":822569,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24331,94429],"tags":[],"class_list":{"0":"post-822568","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-approach","8":"category-prudent"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/822568","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=822568"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/822568\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/822569"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=822568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=822568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=822568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}