Pre-tax profit at Derby-based Bowmer & Kirkland fell by 15 per cent in its most recent financial year despite higher turnover.
Revenue for the year ending 31 August 2023 totalled £1.24bn compared with £1.14bn the year before, it latest accounts show.
However, profit at the family-owned contractor and building services group fell by almost £10m to £53.4m.
This caused Bowmer & Kirkland’s margin to narrow from 5.5 to 4.3 per cent.
In a statement accompanying the accounts filed with Companies House, chairman Jack Kirkland said that his firm’s performance was “decent” despite “challenging conditions in the wider construction market”.
He blamed inflation, “a small number of difficult projects” and subcontractor insolvencies for the profit slump.
Bowmer & Kirkland fell eight places to 20th in the CN100 2023 table of top UK contractors.
It employed a monthly average of 1,684 staff, up from 1,625 in 2021/22. Directors paid out dividends of £10.1m, compared with £8m the previous year.
The firm had no bank loans and ended its 2022/23 financial year with £458,779 of cash in the bank, down by 8 per cent on the previous year.
Kirkland said: “A priority of mine and the board is to continue to strengthen our balance sheet which provides comfort to our construction clients and enables us to be nimble when dealing with acquisition opportunities.”
In March 2023, the firm acquired Coventry-based structural insulated panel manufacturer Innovaré Offsite Ltd from Osborne Group.
Kirkland said the offsite specialist was “much utilised by our construction companies and other main contractors, particularly in public sector work”.
This year, Bowmer & Kirkland acquired Cambridge-based heating and ventilation specialist Adcock Refrigeration and Air Conditioning in March for £50m.
Bowmer & Kirkland has places on university frameworks in Manchester (pictured) and Cambridge.
It is also among the 87 contractors involved in the £8bn Procure Partnerships Framework.
