JRL Group Holdings Ltd made a loss of 拢36.9m before tax for the 16 month period to 30th April 2025 on turnover of 拢784.7m and. Previous accounts, for the year to December 2023, showed a pre-tax loss of 拢25.4m on turnover of 拢826.1m.
Most of the operating companies within the group made a loss during the period, including the three biggest ones: J Reddington (groundworks and concrete frames), Midgard (main contracting) and McMullen Facades.聽
Chairman John Reddington said that the numbers had prompted him and his new Malaysian partners to review every aspect of the business 鈥� a process set to take two years or more.
However, with a 拢2bn order book and new investment, Reddington said the company is in a good place.
In April 2025 JRL had a 拢50m equity injection from Malaysian construction group IJM, which now owns 50% of the company. (JRL鈥檚 main contracting division, Midgard, had built IJM Land鈥檚 first UK development, Royal Mint Gardens, the first phase of which was completed in 2020.)
Alongside selective property disposals, this injection helped to reduce net debt by more than 拢32m and cut property related borrowings by around half.
Within the Hertfordshire-based group, J Reddington (groundworks and concrete frames) made a pre-tax loss of 拢7.2m on revenue of 拢298.1m for the 16-month period.聽 In 2023 it had lots 拢700,000 on 拢353.1m revenue.
Midgard (main contracting) lost 拢15.4m before tax on 拢579.6m revenues in the latest accounts, compared to a loss of 拢10.0m on revenue of 拢612.4m in 2023.
London Tower Crane Hire & Sales made a pre-tax profit of 拢7.1m on revenues of 拢57.7m, compared to a profit of 拢4.1m on revenue of 拢41.5m in 2023.
Ark M&E Services and Thames Reinforcements were also profitable, but JRL Plant & Logistics slipped to a loss of 拢3.2m before tax.
JRL Dryling and JRL Environmental also made losses, the former losing 拢2.4m before tax on revenue of 拢33.5m, the latter a 拢1.5m loss on 拢14.3m revenue.
McMullen Facades turned over 拢120.8m in the latest 16 month period and reported a pre-tax loss of 拢15.8m.
JRL Demolition and JRL Access (a scaffolding business) also filed pre-tax losses.
Chairman John Reddington wrote in the annual report: 鈥淭he last few years have been amongst the most challenging the group has faced in its 30 years history. 聽The construction industry has been operating against a backdrop of prolonged cost inflation in labour and materials, tighter credit conditions and fixed price commitments that, in many cases have translated directly into losses. These pressures, together with a small number of under-performing contracts, are reflected in the group鈥檚 financial results.鈥�
He said: 鈥淲ith the recapitalisation now completed, JRL is in a far stronger financial position. At 30 April 2025 the group reported net assets of 拢113.2m, compared with 拢101.1m at the prior year end, and retains substantial available facilities and liquidity headroom. This gives us the platform we need for the next evolution of the business.
鈥淭ogether with our new partner IJM, we have initiated a comprehensive end-to-end review of the business to identify any underperforming units and rebase the group鈥檚 operating model for the next phase of growth, supported by the strength and quality of our order book.
鈥淭his will be a multi-year, phased review, starting with a detailed assessment of overheads, management reporting, operating centres, gross margins and out offsite manufacturing platform, including how these assets can better support programme certainty for our clients.
鈥淚n parallel, and in conjunction with IJM, we are undertaking a broader business model review, reassessing fixed price risk in light of recent inflationary experience and considering where activities or costs could be more appropriately managed externally rather than within the group.
鈥淲hile we will rigorously challenge all aspects of in-house delivery, we remain confident that our integrated model 鈥� applied selectively and with appropriate risk management 鈥� is central to the programme certainty that our clients value.鈥�
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