Construction materials

Building materials firm Acheson & Glover posts solid profit increase

Building materials firm Acheson & Glover, which has weathered two factory closures and the Covid-19 pandemic in recent years, posted a healthy rise in profits last year.

The parent company of Co Tyrone, which supplies landscaping and other materials to the construction industry, revealed pre-tax profits of just over £4million for the year to the end of 2021, compared to around £400,000 the previous year.

Revenue for the year was £25.8m, up 18% on the previous year, when operations were disrupted by the outbreak of the pandemic , reveal the accounts of the parent company, ACH Number One. The company had total assets of £20million at the end of the year, according to the accounts.

The company operates AG Paving from its headquarters in Fivemiletown, which specializes in landscaping and hard construction products, providing wall, paving and facing brick products. It also has several AG showrooms here.

AG’s results reflect the hard work and efforts of all employees in a difficult environment, given the recent Covid restrictions, chief executive Stephen Acheson told the Belfast Telegraph.

“We remain very confident for the future and are particularly focused on growing our market share outside of Northern Ireland, with sales in the UK and Republic of Ireland again increasing strongly in 2022″ , added Mr. Acheson.

Accounts show the company, which employs around 230 people and had payroll costs for the year of £8.9million, needed to use the furlough scheme, taking £89,000 a year latest and just over £800,000 in 2020.

While the results show healthy profits and revenue, the company faces challenges.

“Input cost inflation is clearly a challenge for the industry, but AG is overcoming it with a focus on innovation,” Acheson said.

“For example, it will soon complete a three-year knowledge transfer partnership with Queen’s University that has helped the company adopt new materials and processes to improve quality and reduce costs across its operations.

“The company is also moving quickly to reduce its carbon emissions and go to net zero. It has achieved a 10% reduction in its…emissions…production volumes increasing by 30%.

Mr. Acheson added: “The company continues to invest for the future and is currently installing a new tile manufacturing facility at its Fivemiletown headquarters. This £3 million investment will be commissioned in early 2023.”

The company struggled in 2018 and 2019 when it closed its precast factories in Ballygawley and Magherafelt, resulting in the loss of around 150 jobs.

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