Kent-based TRAD Scaffolding has posted a significant 15% increase in its pre-tax profit for the year ending 31 August 2023, alongside a positive outlook for the coming months.
According to Construction News, the company’s latest financial accounts reveal a pre-tax profit of £3.27 million, up from £2.84 million in 2022.
Despite a modest 2% rise in turnover, reaching £14.9 million compared to £14.6 million the previous year, the scaffolding firm experienced notable growth in activity during the third and fourth quarters. TRAD attributed this growth to an increase in the volume of projects and a robust pipeline of upcoming work despite facing a competitive market environment with aggressive pricing.
The company’s strategic report highlights ongoing challenges in the construction market, particularly labour shortages. To counteract these issues, TRAD Scaffolding’s directors are focusing on recruitment and training strategies to ensure the company can meet demand and maintain service quality.
As of August 2023, the firm reported a cash balance of £2.86 million and net assets totalling £10 million. The company’s debt to creditors decreased by 6% to £6.22 million, down from £6.6 million in 2022.
However, the company’s workforce significantly reduced, with employee headcount dropping 19% from 147 in 2022 to 119 in 2023. Correspondingly, total staff costs, including wages, salaries, social security contributions, and pension contributions, fell by 27% to £6.12 million from £8.39 million the previous year.
TRAD Scaffolding is owned by TRAD Group Ltd, was recently ranked fourth in Construction News’ index of the top 10 scaffolding contractors.
The financial report, signed by Director Peter McShane, reflects the company’s strategic efforts to navigate market challenges and capitalise on growth opportunities.
As TRAD Scaffolding looks ahead, its strong pipeline of projects and focused recruitment and training strategies position it well to continue its upward trajectory in the competitive scaffolding industry.
