The Headcrown Group is delighted to announce a return to profitability in the financial year ended 30 September 2012. The net profit before tax for the year of £132,000 was achieved by the Group after taking significant one-time restructuring costs of nearly £500,000. The underlying performance of the Group, with a materially reduced level of overhead going forwards, stands us in good stead for the coming year.
There remains continuing downward pressure in the UK construction sector on both overall work volumes and margins across the market and evermore aggressive attempts to transfer risk onto contractors. We have moved quickly to manage our cost base while not compromising our steadfast commitment to quality or reducing our approach to risk management. One of the benefits of being a privately owned business means we are able to focus on overall business stability rather than chasing headline revenue growth.
Our sales pipeline is strong for the coming year, despite the difficult market conditions and we have entered into the new financial year in substantially better condition that we did in the prior year. Presently we have more than 90% of our construction revenues for the current year secured.
We are forecasting increased profits in the coming year and while there are no immediate signs of market upturn, we do believe a general improvement will occur in the market over the medium term.