Profits at John Paul Construction climb to €18.7m as it diversifies
Turnover and profits at John Paul Construction soared last year as it benefited from a continuing strategy to diversify its sectoral and geographic footprint.
Figures seen by the Independent.ie4 show that operating profits at the group jumped 65pc to €18.7m in 2021 as turnover rose just over 19pc to €420m.
Liam Kenny, the company’s managing director, said the group also remains debt free following the strong performance last year.
“A significant contributing factor to the improved results was the continued application of the company’s sectoral and geographical diversification strategy, the major objective of which is to deliver enhanced margin and mitigate against cyclical market risk,” he said.
Mr Kenny, who noted that the company has received a number of industry awards this year, said that John Paul Construction has faced challenges common to the rest of the sector.
“Whilst the performance during 2021 and 2022 to date has been, on the whole, positive, the company has had to face and manage the many challenges brought about by inflation, resource constraints and supply chain issues,” he pointed out.
He said that although the outlook for 2023 in the areas that the company does business in “remains positive”, it is actively managing “ever-changing risks” that face the industry. He said the diversification is a key element of ensuring the company’s continued success.
John Paul Construction operates throughout Ireland, the UK and the Middle East. During the past 12 months, it has delivered a 374-unit residential scheme in Dublin, as well as phase three of the Kildare Village outlet mall. It has also worked on a major development on Tara Street in the capital that features hotels for Travelodge and Staycity, as well as a residential block for Dublin City Council.
It’s also been involved in a number of data centre and life sciences projects.
It’s currently working on projects including the construction of the Cornerstone Development in Stillorgan on behalf of US property investment group Kennedy Wilson. That’s a 232-apartment scheme with retail and café units in blocks ranging from four to eight storeys.
The latest construction purchasing managers’ index from BNP Paribas Real Estate Ireland last month showed that construction activity continued to contract in August, but at a lower pace than in July.