Construction firms worldwide have seen profits decrease since March 2020, resulting from the coronavirus pandemic & thousands of contracts being terminated internationally. Few firms have announced growth during the 2nd or 3rd quarter of 2020, with Q4 expected to evoke similar losses. Profits dropped immediately in January after China confirmed their outbreak of coronavirus.
Before Covid-19, profits were increasing drastically for most Construction firms in 2019. That was what happened with the Graham Group, Northern Ireland’s most prominent & active construction firm. November 5th saw the firm announce their pre-tax profits, which increased to £11m at 38% for 2019. Turnover percentages also grew at unexpected volumes by 16% to £853m. However, forecasts evaluated by Graham Group Finance Department indicate the profits are likely to decrease throughout 2020/21.
Executives were questioned on the possibility of sustaining profits throughout the remainder of 2020, and into 2021s fiscal year. Clarification was given that orders committed for 2021 provide continued opportunity for employees & sustainable growth of largescale cities in Northern Ireland. The Graham Group will significantly factor into the reconstruction of cities like Belfast. Media personnel questioned executives on revenue increasing in 2021, which Executive Chairman Michael Graham clarified that quality over quantity is their focus going into the Post-Covid Era.
The Graham Group have used minimal percentages of their cash reserves during the first & second lockdown in Northern Ireland. Profits are expected to sustain volumes 10% lower than 2019’s fiscal year during 2021. That’s because Executive Chairman Michael Graham is focusing on quality over quantity, knowing that their brand reputation will guarantee their continued success in Northern Ireland.
The Brexit Factor
Executive Chairman Michael Graham noted that 2020 has been more challenging because of Brexit, mentioning that uncertainty with international contracts is growing. Travel permissions are given to largescale corporations with international party agreements in the United Kingdom, which Northern Ireland is part of after the last referendum. When Michael Graham was questioned on the financial performance seen in 2019, he’d evoke it was an enjoyable day for the corporate division. It should be clarified that the Graham Group sustaining a large percentage of their profits means that 2,000 employees are guaranteed to keep their jobs.