Eugene Lynch (left), McAvoy CEO, and Mark Lowry, who joined as MD in April
Modular outfit McAvoy Group expects turnover to grow to £70m this year, after a dip in revenue during a loss-making 2018.
The results for the year to 31 October 2018 saw turnover drop to £44.9m (2017: £59.9m), which the company attributed to political uncertainty affecting its pipeline.
“We experienced a slowdown in progressing contracts in 2017, perhaps due to the election that year,” said CEO Eugene Lynch. “This had a significant impact on the flow of projects in 2018 and resulted in a decrease in turnover last year. We took the decision to retain all our core skills and continued to invest for future growth regardless of the reduction in turnover.
“We are pleased to report that our growth in 2019 has been significant, increasing to around £70m. We anticipate further growth in 2020, despite the uncertainty around Brexit and its potential impact on the wider economy.”
The pre-tax loss of £1.8m (2017: £4.2m profit) was due to heavy investment in R&D ahead of McAvoy’s entry into the offsite housing market, Lynch said.
Last November, the firm unveiled a 95 sq m prototype house for the affordable homes sector, constructed with four steel-framed modules and two pre-tiled roof units, and certified by BOPAS with a design life of at least 60 years.
“We invested significantly in 2018 in research and development for our entry into the offsite housing market and to plan, prototype and deliver our first project in this new sector,” Lynch said. “We made provision for this investment in 2018 and have continued to develop our operational and engineering capabilities this year to reflect the scale of the opportunity for the business in the residential sector.
“We are committed to expanding into offsite housing and to becoming a major provider of new homes. We also have ambitious plans to grow our existing business across the education, healthcare, commercial and infrastructure sectors where we continue to push the boundaries of offsite and digital construction technology.”
McAvoy has announced plans for a new factory in England capable of delivering 1,000 homes a year on top of its facilities in Lisburn and Dungannon, Northern Ireland.
The group works in the health, education, residential, commercial and infrastructure sectors, and is on frameworks with the DfE, NHS and Crown Commercial Service.
