Gilbert-Ash, the contractor behind the National Portrait Gallery’s recent redevelopment, reported a notable decline in profits for 2023, despite a record turnover.
- The gallery reopened in June 2023 following a £41m refurbishment led by Gilbert-Ash.
- While turnover hit £267m, the company’s pre-tax profit fell to £1.5m, a sharp decrease from previous years.
- The profit decline is attributed to rising input costs due to inflation, despite maintaining a robust order book.
- Significant projects included two recognisable London hotels and notable educational and public sector developments.
Gilbert-Ash, renowned for its recent work on the National Portrait Gallery, has experienced a significant decline in profitability for the fiscal year ending December 2023. Despite reopening the gallery in June after a £41m refurbishment, the company’s pre-tax profits plunged to £1.5m, decreasing by 64% from 2022’s £4.2m and a stark 87% from £12.0m in 2021.
Despite the profit downturn, Gilbert-Ash set a new record for turnover, reaching £267m in 2023. However, this reflected a modest growth of just 1.9%, failing to keep pace with inflationary pressures that have intensified the costs of inputs. Nevertheless, the management remains confident about their financial resilience, citing a substantial order book as an anchor against the volatile economic climate.
In 2023, Gilbert-Ash not only completed the prestigious Stirling Prize-nominated redevelopment of the National Portrait Gallery but also delivered other high-profile projects including a £39m Hub by Premier Inn hotel in Clerkenwell and a £21m Ruby Zoe Hotel in Notting Hill, both located in London. Additionally, the company accomplished the construction of a £24m performing arts centre and theatre at Brighton College.
Further cementing its role in significant educational and public infrastructure, Gilbert-Ash secured new contracts in 2023 such as the £31m construction of St Paul’s New Junior School in west London and a £35m project for building two sixth form boarding houses at Winchester College, expected to complete by 2026. Managing Director Ray Hutchinson expressed pride in these achievements despite challenging conditions, praising the resilience and dedication of the team’s efforts.
Looking ahead, Gilbert-Ash remains optimistic as it embarks on new undertakings, including ongoing works at Tate Liverpool and Theatr Clwyd in Wales. Their strategic focus on diverse high-value projects is expected to sustain their market position while potentially offsetting the pressures from within the construction sector.
Gilbert-Ash, though facing profit challenges, remains committed to delivering ambitious projects amid economic pressures.
