Turnover at the Barnes Group has topped £100m for the third year running, with increasingly stable business conditions driving a surge in profitability.
The Ipswich-based group, which includes general contractor Barnes Construction and mechanical and electrical (M&E) firm Bower Fuller among its businesses, said additional public investment in the improvement of hospitals and schools had contributed to a brighter outlook.
Its annual report and financial statements for the year ending September 2024 showed turnover at £101.3m, marginally up on last year’s £100.7m, while pre-tax profit swelled from £3.2m to £5.5m.
The firm posted revenue of £100.5m in its 2021/22 financial year.
Barnes Group’s latest accounts described a monthly headcount of 214 employees and it paid out £1.7m in dividends, up from £1.1m the previous year.
The latest accounts also described a year-end cash balance of £30.9m and no bank loan debt.
Barnes Group said it benefited from a “very marked jump” in market interest rates, which boosted interest income from £322,000 in 2022/23 to £1.4m in 2023/24.
“This is one of the benefits of having built substantial cash balances over many years to ensure we have a strong balance sheet,” it said.
It also took advantage of “calmer waters” to release material provisions reserved in light of the difficult market conditions of the previous three years.
Within the group, Barnes Construction had a particularly strong year, partly due to the spreading of tightly controlled overheads over a greater volume of activity.
Among its main contracts were re-roofing works at Clare College in Cambridge and construction of the new urgent treatment centre at Ipswich Hospital, as well as several projects at the Sizewell nuclear site.
“The division has a strong order book for the year ahead and, while market conditions remain variable, is hopeful of continuing to perform well in 2025,” said director William Barnes in the strategic report accompanying the accounts.
Bower Fuller achieved a satisfactory level of turnover and profitability despite a “hectic” year made more difficult by a major project cancellation at short notice and several substantial delays to larger projects, he said.
“This has necessitated a focus on winning chunks of work with quick starts in order to keep the team of employees busy,” said Barnes.
The pressures on M&E contractors continued to be considerable, he added, not helped by the financial woes of several main contractors.
“Bower Fuller has done very well to build a strong order book for the year ahead while continuing to be selective in the types of work undertaken and being careful to work for main contractors with a strong financial position,” said Barnes.
