For the year ended 31st October 2022 Morrisroe Group made a pre-tax loss of 拢6.9m. Turnover was steady at 拢203.8m (2021: 拢202.5m).
That loss included a 拢1.32m provision towards the 拢1.92m fine imposed upon Cantillon Demolition for its role in bid rigging between 2013 and 2018. Morrisroe acquired Cantillon in 2020.
Morrisroe built the structure for the new Tottenham Hotspurs football stadium in London as well as both the London and Birmingham Aquatic Centres for both Olympic and Commonwealth Games.
Chief executive and owner Brian Morrisroe writes in the annual accounts: 鈥淭he trading period through to October 2022 was plagued by global disruption caused by the Ukraine war, which impact global supply, drove up energy prices and aggravated inflationary pressures.
鈥淥ur strong balance sheet and cash position enabled us to trade through much of the market turbulence in the period and continue to pursue our business development objectives. Some very unexpected price increases in relation to many of our key materials has resulted in some disappointing trading results in our traditionally strong performers AJ Morrisroe & Sons, Kingscote Plant and GSS Piling. Considerable losses in relation to a number of fixed-price contracts has resulted in our first trading loss as a group.鈥�
Expanding on this, he adds: 鈥淯nexpected price increases in relation to our primary materials accounted for up to 40% of our contract sums. Pre-purchasing of materials at various points in the period provided some protection from the exposure to further price increases but this could not mitigate the full impact of reinforcement prices increases, which in the period rose by 130%. Concrete prices increased by 26% and plywood prices rose by 25%./
鈥淚n view of the considerably price volatility experienced in the period we are now including negotiated fluctuation clauses in our contracts and/or seeking appropriate risk-sharing arrangements with clients.鈥�
AJ Morrisroe & Sons,聽 the original part of the business founded in 1983, accounted for 47% of the total revenue, followed by Houston Cox Central with 21% and Cantillon Demolition with 15%.
The annual accounts also relate how Cantillon director Paul Cluskey, having previously signed an undertaking not to act as a company director for four years following his role in the demolition industry cover bidding scandal, was able to secure High Court permission to continue as a director and take part in the management of, the newly rebranded Morrisroe Demolition Limited.
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