Covid hits Ardmore revenues by £100m

Construction firm turnover below expectations for 2020

Ardmore worked on the Athlete's Village for the London 2012 Olympic Games. Picture by Brendan Moran/SPORTSFILE

May 02 2021 02:30 AM

London-based Irish builder Ardmore, which was founded by Donegal brothers Patrick and Cormac Byrne, suffered a £100m (€115m) hit to its revenues by the pandemic last year, according to its latest accounts.

The company, which was founded in 1974, previously worked on the London Olympic village, the redevelopment of Battersea Power Station, the Ned hotel in the City, and renovated the Corinthia hotel close to the Houses of Parliament.

A recent project win for the firm was a conversion of The Old War Office, a listed government building where Winston Churchill once worked, into apartments and a five-star hotel, complete with six-storey basement.

Ardmore’s accounts stated that 2020 had been expected to be a record year for its output, and turnover had been expected to be close to £400m. Due to the pandemic however, they increased from £211m in 2019 to £273m last year.

The cost of changing working practices during the past year also weakened its profit margin, which fell from 15.8pc to 10.4pc, booking £9.1m in profit, compared to £8.2m in 2019.

The firm’s assets include £19m worth of investment property, and Killybegs natives the Byrnes also own land in Donegal and Louth. “They are currently reviewing the strategic options of Ardmore Contracting (Ireland) and its property portfolio,” the accounts stated.

"Looking ahead, the Group is forecasting a record level of turnover of circa £389m in 2021, and the gross margins are expected to be consistent with 2020…but there remain significant challenges.

"[We continue to offer] customers a viable route to designing and building their residential, commercial, and mixed use properties. The market is tough, but the Group remains focused on being competitive,” the company, which employs over 320 people, said.