{"id":519735,"date":"2025-05-01T12:31:09","date_gmt":"2025-05-01T11:31:09","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=519735"},"modified":"2025-05-01T12:31:09","modified_gmt":"2025-05-01T11:31:09","slug":"lorne-stewart-still-faces-challenges-despite-narrower-loss","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/financial\/lorne-stewart-still-faces-challenges-despite-narrower-loss-01-05-2025\/","title":{"rendered":"Lorne Stewart\u00a0still faces \u2018challenges\u2019\u00a0despite narrower loss\u00a0"},"content":{"rendered":"

West London-based mechanical and electrical (M&E) specialist Lorne Stewart has narrowed its pre-tax loss from \u00a32.4m in 2023 to \u00a31.6m last year, its latest financial results show.<\/span>\u00a0<\/span><\/p>\n

However, the firm posted lower turnover of \u00a3101.6m in its latest accounts for the year to 31 December 2024, <\/span>compared with \u00a3118.7m in 2023<\/span><\/a>.<\/span>\u00a0<\/span><\/p>\n

This resulted in a slightly narrower profit margin of 1.6 per cent last year compared with 2 per cent in 2023.<\/span>\u00a0<\/span><\/p>\n

The strategic report accompanying the accounts said that Lorne Stewart \u201ccontinues to face challenges due to multiple factors\u201d. <\/span><\/p>\n

These include inflation, the continuing fallout from Covid and its effect on supply chains, geopolitical tensions and trade restrictions.<\/span>\u00a0<\/span><\/p>\n

Nonetheless, the company\u2019s liquidity improved with cash in hand of \u00a313.3m for 2024, up by one-third on the 2023 figure of \u00a310m. <\/span>\u00a0<\/span><\/p>\n

Lorne Stewart said this was down to \u201cimproved working capital management\u201d.<\/span>\u00a0<\/span><\/p>\n

Although it has no bank loans, the firm said it is dependent on its parent company, Saudi-owned LSRM Holdings, for working capital.<\/span>\u00a0<\/span><\/p>\n

Lorne Stewart shed just two jobs in 2024 to retain 563 employees, but reduced its payroll costs from \u00a331m in 2023 to \u00a329.6m last year.<\/span>\u00a0<\/span><\/p>\n

While it is looking to maintain its good relationships with existing clients, Lorne Stewart said it was also looking at \u201cbroadening the client base to mitigate the risk of overdependence\u201d.<\/span>\u00a0<\/span><\/p>\n

\u201cMargins remain a challenge at all levels of the supply chain, making insolvency a high risk at client level, as well as at subcontractor\/supplier level,\u201d Lorne Stewart\u2019s chief financial officer Ramesh Krishnamurthy said in a statement accompanying the accounts. <\/span>\u00a0<\/span><\/p>\n

\u201cThe company is therefore rigorously maintaining compliance with its criteria for any new clients\/supply chain,\u201d he added.<\/span>\u00a0<\/span><\/p>\n

Having paid no dividend in 2023, Lorne Stewart paid \u00a32m to shareholders last year.<\/span>\u00a0<\/span><\/p>\n

Going forward, the company sees better prospects, given the \u201ccurrent year\u2019s financial performance has been largely affected by legacy projects which are now completed and cost taken.\u201d\u00a0 <\/span>\u00a0<\/span><\/p>\n

Since the period covered by its latest accounts, Lorne Stewart won a place on an <\/span>\u00a3814m Pagabo facilities management framework<\/span><\/a>, announced this January.\u00a0<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

West London-based mechanical and electrical (M&E) specialist Lorne Stewart has narrowed its pre-tax loss from \u00a32.4m in 2023 to \u00a31.6m last year, its latest financial results show.\u00a0 However, the firm posted lower turnover of \u00a3101.6m in its latest accounts for the year to 31 December 2024, compared with \u00a3118.7m in 2023.\u00a0 This resulted in a …<\/p>\n","protected":false},"author":155754,"featured_media":406629,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[552,57171],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\t\n\t\n\t\n