Profit trebles at London scaffolding specialist

Pre-tax profit at GKR Scaffolding trebled last year as sales surged by almost £10m, according to the London-based specialist contractor’s latest annual accounts.

Audited figures for the year to 31 October 2024 showed that revenue rose from £31.3m to £41.2m, generating a pre-tax profit of £9.8m – up from £3.3m the year before.

This broadened the firm’s margin from 11 per cent to an even healthier 24 per cent, and continued the recovery from its post-Covid nadir of £1.2m profit from £25.9m turnover in 2022.

GKR was ranked eighth in last year’s CN Specialists Index for scaffolding firms, based on its 2023 turnover.

Directors declared themselves “satisfied” with the results, which also showed that cash at bank rose by £1.5m to end the year at £6.1m.

They said the latest sales figures beat expectations “despite [a] predicted decline in construction output for the UK” last year, and outpaced a 22 per cent rise in distribution costs.

Directors cited unspecified “efficiency savings” within the business that offset an increase in HVO fuel costs and “increased fleet vehicle costs to meet the demand of safer HGV vehicles on the road”.

They added that GKR increased its investment in system scaffolding last year.

This is “expected to reduce throughout the next reporting period with the business being able to optimise use of our own materials supply”.

A dividend of £1.9m was paid out, up from £1.5m the year before.

The firm held no external loans or bank overdrafts.

GKR’s directors said the firm had a “strong pipeline going into 2025”, and it is targeting a 5 per cent sales increase this year.

The company works primarily with tier one contractors in London and is currently providing scaffolding for McLaren’s £90m art deco landmark remodelling project near Waterloo Bridge.

Completed jobs in its portfolio include Number 1 Court at Wimbledon for Sir Robert McAlpine and Damac Tower for Multiplex.