A family-run construction firm is back in the black after fixed-price contract pressures eased.
London-based Jerram Falkus Construction reported its turnover in the year to July 2024 was £47.6m, up from £45m the year before.
The full accounts statement, published on 13 December, revealed a pre-tax profit of £37,000 against a loss of £6.8m in 2023.
Its statement said the firm, which focuses on refurbishments and new builds, had achieved the turnaround because “inflation affecting our fixed price contracts has unwound”. Those jobs had been impacted by “unprecedented” price rises.
The company said it was helped by having a predominantly established supply chain.
A factor in its recovery is a business strategy that focuses on bid selections and results in “a mixed portfolio of projects” that “avoid undue reliance on any one sector or client”.
The 140-year-old firm submitted 21 tenders for jobs during the statement’s period, compared to 29 for the previous year.
For the second year running, 100 per cent of sub-contractors paid within 30 days.
Cash at the bank and in hand was £2,018 against £3,404 for the previous year.
The firm has not paid out a dividend, the statement said.
It employed an average of 63 staff, down from 77 during the previous year. The average length of service was 12 years.
Recent projects for Jerram Falkus include refurbishment works for the University of Westminster and two housing projects for Brent Council.
It has also diversified into modular construction to benefit public sector clients.
Looking ahead, projected turnover was tabled at £57.4m by July 2025 of which 91 per cent of work is already under way.
It added Jerram Falkus will continue its focus on “strong, long-term relationships” with clients.
The firm said it was confident that “margins will continue to recover to their normalised levels”.
The statement said: “Increases in cost are priced within the current onsite projects as well as additional provisions for further inflationary risk.”
