Project delays erode McAvoy profits during ‘constrained’ modular market

Northern Ireland-based offsite specialist, McAvoy is confident demand for its sustainable building solutions will continue, as it enjoys a strong pipeline of opportunities for FY2026 and beyond, following a “constrained” trading environment last year.

For the year ended 31 May 2025, pre-tax profit fell to £290,745 from more than £5 million the year prior, with revenue also down during the same period, coming in at just under £63 million (FY2024: £86.9 million).

Bosses blamed project starts being delayed that year, compounded by a public spending review shortly after the UK General Election in 2024, as contributing factors to the diminished results.

Despite these headwinds, the County Antrim-headquartered business delivered a “satisfactory” EBITDA metric (FY2025: £1.74 million; FY2024: £2.81million).

In October last year, European mid-market investor, Duke Street acquired McAvoy Holdings Limited and its subsidiaries, which includes McAvoy Modular Offsite Limited (McAvoy), a specialist in the design, manufacture, installation, fit-out, rental and maintenance of modular buildings.

Bosses at McAvoy said the deal will drive ongoing investment in its rental fleet, following rising demand across the healthcare, education and commercial sectors in both the UK and Irish markets.

During the year, McAvoy delivered several longer-term rental projects in the education sector, as well as increased modular space across these very markets and regions.

Income generated via the rental of its buildings increased by 43 per cent, while maintaining a strong 92 per cent utilisation rate.

The pipeline for FY2026 and beyond is “robust”, with demand for its products expected to strengthen throughout the year, bosses said.

Looking to its balance sheet, net assets for McAvoy Modular Offsite held steady at more than £11.5 million (FY2024: £11.49 million), supported by a cash position of more than £2.7 million (FY2024: £15.65 million).

However, operating profit for the period tumbled to £888,717 last year from £1.29 million in 2024.

“The pipeline for FY26 and beyond is robust with demand for all products expected to strengthen throughout the ensuing period,” a financial statement reads.

For the year ended 31 May 2025, McAvoy Holdings Limited delivered improved profit before tax of £415,542 (FY2024: £217,631), with revenue down to £43.69 million (FY2024: £75.52 million.)

Since 1997, Duke Street has invested more than €3 billion and made 60 investments across Europe.

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