RG Carter has managed to increase its pre-tax profit by 80% despite a significant drop in turnover.
- The company’s revenue dropped by 23%, but strategic decisions led to a profit rise.
- Chairman Robert Carter highlights the firm’s selective approach in project acquisition as key to their financial performance.
- New building safety regulations pose challenges to the company, prompting a multi-layered risk mitigation process.
- The firm secured major contracts, including projects with Cambridge University and on a healthcare decarbonisation framework.
RG Carter demonstrated a noteworthy financial performance by boosting its pre-tax profit to £12.8 million, representing an increase of 80% from the previous year, despite a stark reduction in revenue. The firm’s turnover fell by 23%, dropping from £322 million in 2022 to £248.5 million in 2023. This financial outcome is attributed to the company’s judicious project selection strategy, which Chairman Robert Carter emphasised in his report.
The firm’s construction activities accounted for a significant 92% of its overall turnover, although construction revenue itself declined to £228 million from £304 million in the previous year. The strategic decision-making reflected in the company’s financial results underscores its focus on carefully chosen projects and clients.
A pressing challenge identified by RG Carter entails adapting to new building safety regulations, which Carter describes as potentially applicable retrospectively to finished projects. In response, the firm has implemented a comprehensive review and training process to mitigate associated risks, ensuring adherence to updated safety standards effectively.
Additionally, RG Carter’s financial stability is evidenced by maintaining robust cash reserves, with cash at the bank only slightly decreasing from £74.2 million to £71.5 million. The company operated without bank loans, while also successfully reducing retention amounts owed to creditors.
Despite a reduction in workforce, with the average monthly headcount decreasing by 29 employees to 778, RG Carter secured pivotal contract wins. Notable projects include a place on Cambridge University’s £680 million estate framework and contributions to a £1.3 billion healthcare decarbonisation framework. The firm’s continued engagement with high-profile contracts hints at a strategic positioning for future growth.
RG Carter’s financial prudence and strategic project selection have enabled it to thrive amid revenue challenges and regulatory changes.
