John F Hunt Demolition back in profit

John F Hunt Demolition is out of the red. After logging a £1.1m loss last year, the company has just unveiled a pre-tax profit figure of £1.9m.

There has been a little confusion as to whether this profit is for a full year or just a six-month period.

Latest financial results from Companies House are labled as being Hunt Demolition's annual report for the period to 31 March 2007. They show turnover at £24m, although discontinued activities contributed £2m towards this figure.

However John Hall, who owns and runs the business, says that the group has moved its year-end from 30 September and as a result, the latest figures cover a half year period only. So while Hunt's annual turnover in 2006 ran to £31m, Hall predicts the next true full-year figure will be north of £40m.

The directors’ report said that they see good trading prospects for the immediate future and expect results to improve further.

They add: “After a difficult period of trading for the preceding 12-month period, the group is well positioned to continue the improvement shown over the last six months. The group is now operating at a level of turnover that is sufficient to cover overheads and generate a suitable net profit.

The group had two business streams: demolition and plant hire.

Demolition turnover ran to £19m and generated a profit of £1.4m, while the hire operation’s £5m turnover added a further £450,000 to the group’s profit tally.

Hall said that the group is expanding rapidly on a third front - a new division called John F Hunt Power Services which hires generators. It provided power services recently to the Tour de France when it kicked off in London and then headed off to Canterbury.

Hall anticipates that turnover from the division will run to £6m. It has three bases: Grays in Essex, Aldbury in the west Midlands and Newcastle-upon-Tyne.

Overall, the group has 214 employees.

The group has seven directors. They were paid a total of £320,000. The highest-paid director received £55,000.

Working capital was boosted by two cash injections: £350,000 from managing director John Hall and a further £1.5m from Mill Green Properties, owned by Hall and his wife.