FP McCann report shows continuing profitable expansion
FP McCann is a family controlled construction products firm centred in Magherafelt, Co Londonderry. The directors describe its main activities as being civil engineering contracting, quarrying and the manufacture of concrete products.
The annual report for the year to the end of January 2015 shows a continuing profitable expansion of the business.
In the last six years, when the construction industry has been affected by a sharp fall in overall production, FP McCann has enjoyed an uninterrupted period of expansion. Turnover has doubled and the profit margins have improved.
In terms of turnover, profitability and employment, FP McCann now ranks as one of the larger private sector businesses.
A growing successful business has allowed the firm to reduce the level of external funding needed and the net cost of interest on borrowed funds has fallen. This has narrowed the difference between operating profits and pre-tax profits.
In 2013-14, a one-off cost of just over £0.7m was caused by a recorded loss on asset disposal.
Employment in the firm averaged 901 people in the most recent year. This compares with average employment of 422 people five years ago, in 2010-11.
The balance sheet value of shareholders' funds rose to £86.1m in January 2015, compared to £58.0m in January 2014. This large increase stems partly from the retention of post-tax profits in the business. Only £0.3m was paid out as dividends to the shareholders.
More significantly, the company has assessed in the latest year that there has been an unrealised improvement in the value of property that it owns. A net positive movement of over £20m is attributed to this.