Modular construction firm, Thurston Group has reported a resilient performance with strengthened cash reserves despite market challenges impacting revenue, as it continues to target £100 million turnover in six years.
For the year ended 31 October 2024, the West Yorkshire-based firm posted revenue of £46.5 million, 8.8 per cent down from £51 million in 2023, primarily due to project delays.
While falling short of its £60 million expectation, Thurston maintained a stable gross margin of 22.4 per cent and operating profit margin of 8.6 per cent, reflecting strong cost management amid reduced revenue.
Operating profit stood at £3.9 million (FY2023: £4.3 million), with pre-tax profit at £3.3 million, down 6.4 per cent from £3.5 million.
The firm recently made four strategic appointments as part of a restructure and plan to reach a £100 million turnover within the next six years, including Hayley Richardson as operations director.
Despite facing challenges in its latest financials like decreased client spending, delays, labour shortages, and rising costs, Thurston said it had implemented proactive measures.
“Our response has been intentional and multi-faceted, including the introduction of advanced procurement strategies, stronger contracting discipline, and a renewed focus on long-term frameworks to mitigate volatility and underpin sustainable growth,” the board said.
Cash reserves surged to £4 million, up from £528,000 in FY2023, while the company secured three key frameworks in education, healthcare, and infrastructure.
Strategic acquisitions like temporary living and secure accommodation unit manufacturer Alsim, in June, and for a total issued share capital of consideration of £802,728, specialist fabrication business, StorPlan, in February.
Both have bolstered Thurston’s technical capabilities, alongside investment in digital transformation.
In its report, the board said: “At the start of the financial year, we entered with confidence, buoyed by a strong and diverse project pipeline.
“While the year presented significant macroeconomic challenges, Thurston adapted with purpose, refining our commercial focus, investing in product innovation, and strengthening strategic relationships to ensure we remain a trusted partner for long-term success.”
Looking forward, Thurston said it would focus on modernising its production facilities and streamlining operations.
Was this interesting? Try: Esh Group hits record cash reserves and £2bn order book boosting confidence for the future
If you have a tip or story idea that fits with our publication, please contact danielle@wavenews.co.uk
Get industry news in 5 minutes!
A daily email that makes industry news enjoyable. It’s completely free.
Notice: JavaScript is required for this content.