Daniel Contractors lifts profit margin to 1.9%
11:05 06 Jan 2009
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Daniel Contractors has unveiled a pre-tax profit of £3.4m which represents a margin of 1.9%.
The latest margin represents an uplift from the figure of 1.1% in the previous year.
Daniel’s latest figures cover the 12 months to 30 September 2007. Turnover was £60m down at £180m.
In the previous year, Daniel made a pre-tax profit of £2.8m on turnover of £240m.
Daniel is a pipeline contractor operating in numerous markets: water, electricity, gas, oil and public sector.
The directors comment that they are pleased that the current economic climate has not resulted in a deterioration to the performance of the group.
They add that: “Acquisitions during the year have strengthened the competencies of the group and will result in continued growth through this difficult economic period”.
During the latest period there was a net cash outflow of £5.7m from operating activities. In total, the group met with a decrease in cash of £12m.
The group had 1,200 employees during 2007 and the total bill for wages and salaries ran to £53m. Pension costs were a modest figure of £400,000.
The highest-paid director took a pay cut, following his £540,000 earnings in 2006, as this time round he settled for just £310,000.
There was a dividend of £405,000 for shareholders.
In February 2005 Daniel bought fellow pipeline contractor Walter Lawrence from Bristol Water Group in a complex deal.
Daniel paid £500,000 but there was a loan by Bristol Water of £500,000 for the following six months and
The seller was on line to enjoy a £3m bonus depending on
The cost of that major deal is still rolling along as Daniel’s latest accounts show a goodwill charge of £2.3m against
The accounts state that these charges will continue “over the joint venture life” without specifying how long a period that might be.