Dawnus Construction doubles pre-tax profit to £1.7m

Dawnus, the Swansea-based contractor, has doubled its profits on the back of a 48% jump in turnover to £64m.

Latest results, covering the 12 months to 31 December 2007, show pre-tax profit much stronger at £1.7m (figure in previous year: £830,000).

Dawnus is a building and civil engineering group with a subsidiary, Dawnus Plant, that provides plant hire services.

The group’s surge in size has triggered an increase in both the professional and direct labour forces.

Dawnus said: “Good control of debtors was maintained and creditor settlement times were reduced with the implementation of better financial controls.”

The talk of cutbacks in the construction sector demand, as potential projects get put on hold, has not daunted Dawnus’s sights.

“Secured turnover at the end of 2007 was at a record level,” said the group, adding that with a strong pipeline of potential contracts, it should enjoy continued substantial growth in 2008.

The company’s long-term strategy is to maintain annual growth figures of more than 20% while generating operating margins on construction work of at least 4%.

The year-end debtors figure was £18m (end of previous year: £10m) while creditors to be paid within the space of one year ran to £16m (previous year: £9m).

The group started the year with a net debt of £620,000 and ended the period with net funds of £550,000.

The highest-paid director collected a pot worth £171,000 which included £13,000 for his pension.