The OHOB Group, a family-run contractor based in south-west London, shows a shift in its financial dynamics, with profit rising alongside a dip in turnover.
- Pre-tax profits saw a modest 4% growth, reaching £21m as of 31 March 2024, despite a 10% reduction in turnover.
- Chairman Tom O’Brien highlights the firm’s robust balance sheet, yet acknowledges challenges posed by rising costs and interest rates.
- The firm maintains a strong financial standing with substantial cash reserves and stable employment figures.
- Ongoing strategic contracts in London’s construction market underscore OHOB’s continued industry relevance.
The family-operated OHOB Group, headquartered in south-west London, has navigated through shifting financial tides with a notable increase in profit and a parallel decline in turnover for the fiscal year ending March 31, 2024. The pre-tax profit enhanced by 4%, amounting to £21 million, while turnover experienced a 10% decrease from £348.2 million to £313 million. This indicates a strategic financial management approach in an unpredictable economic climate.
Chairman Tom O’Brien offered insights into the company’s current status, praising the ‘strong and liquid balance sheet’ and ‘steady order book’, despite the difficulties presented by escalating prices and high interest rates. He stated, ‘We live in uncertain times where profit margins remain challenging’, underscoring a cautious outlook while navigating economic uncertainties.
Despite a reduction in cash reserves by £8 million, totalling £70 million, the company maintains a solid financial posture. Additionally, the workforce figures have remained largely unchanged, averaging at 211 employees per month, indicating stability in human resources.
OHOB Group’s primary business operations are driven by O’Halloran and O’Brien, the company’s groundworks and concrete frame specialist division, which witnessed a significant profit surge of 52% to £13.3 million. Meanwhile, the plant hire division, B&T, saw a marginal increase in turnover by £150,000 to £24.2 million, although its profit margins decreased by £500,000, resulting in £4 million. This division benefits from consistent repeat business, despite ‘demanding’ profit margins as noted by O’Brien.
Historically, O’Halloran and O’Brien Ltd began its journey as a subcontractor in 1972, gradually diversifying into plant hire and residential divisions over half a century. Today, it ranks as the 54th largest contractor in the Construction News annual table. The firm continues to contribute significantly to high-rise residential projects across London, with notable involvements including foundation works for the £300 million Whitechapel development by Mount Anvil and infrastructure works for Telford Homes’ Capital Interchange in Brentford.
OHOB Group remains a significant player in London’s construction scene, despite financial fluctuations.
