Construction firm O'Hare and McGovern has reported pre-tax profits of £1.4m for 2017, but a report from the Newry company cited concerns over what it describes as "a challenging business environment".
In a year where O'Hare and McGovern has restructured the way it reports its finances, the family-run firm reported a turnover of £95.8m for the year to December 31, 2017.
It's slightly down on the £99.5m turnover the company reported for 2016 as parent company Carnbane House Ltd.
Pre-tax profits were also significantly higher for Carnbane House in 2016 at £11.1m.
Established in 1972, O'Hare and McGovern provides contracting services to local and central government, particularly in education, health, leisure and housing. It also works on projects for student accommodation, offices and retail.
Now grouping its accounts under OHMG (Holdings) Ltd, a statement contained in a report made public over the weekend and signed by director Eamon O'Hare stated: "During the year the Carnbane House Group restructured its activities to better manage the differing strategies, risk profiles and funding requirements of its constituent parts and regional markets."
OHMG (Holdings) Ltd includes subsidiaries O'Hare and McGovern Ltd, O'Hare and McGovern (Ireland) Ltd, Carnbane House Ltd and OHMG Ltd. While the construction company said it expects to continue to make a profit in 2018, it has outlined some risks in the current environment.
"The business environment in which we operate continues to be challenging with the key commercial risks being market conditions, the uncertainty surrounding public expenditure levels, competitive pressures, costs of raw material and labour, and customer credit risk," states the new report.
"Increased political and macro-economic uncertainty following the result of the EU referendum has added to these risks."
The vast bulk of the parent group's revenue (£93.6m) last year came from UK contracts, with £2.2m derived from work in the Republic.
The report states that the company's order book "remains strong with turnover remaining at current levels".
It concludes: "The company will maintain profitability in 2018."
O'Hare and McGovern listed 167 members of staff on its books for the 12 months to December 31, 2017, slightly down on the 188 reported by Carnbane House Ltd during the previous year.
However, staff costs remained in the region of £7.5m for the year.
A total of £719,000 was paid out to directors in 2017, with pension contributions accounting for around £30,000 of that sum.
The highest paid director received remuneration of £100,000.