Cammell Laird, a prominent shipyard in Birkenhead, has reported a significant increase in pre-tax profits and a robust order book in its latest annual accounts.
Annual revenues have surged to £146.3m from £122.69m the previous year, driven by multiple revenue streams and new contracts including the Type 26 naval destroyer.
Financial Performance
Cammell Laird has made a remarkable improvement in its financial performance, reporting almost doubled pre-tax profits in its recent annual accounts filed for the year ending March 30, 2024. The shipyard’s turnover increased to £146.3m from £122.69m the previous year, reflecting significant growth across various revenue streams.
Driven by the cluster contract and commercial ship repair projects, alongside the signing of new contracts for the Type 26 naval destroyer, the company has managed to enhance its financial standing substantially. This surge in revenues underscores Cammell Laird’s robust and diversified business strategy.
Key Projects and Contracts
A pivotal factor in Cammell Laird’s financial success is its involvement in several high-profile projects. Among these is the Type 26 naval destroyer project being executed at BAE Systems in Glasgow. Another notable project is the Buoyancy Assist Module (BAM) for BAE Systems, earmarked for deployment in the Dreadnought Submarines from the BAE Barrow facility.
The BAM project is particularly significant as it represents the first of its kind and forms part of the larger Dreadnought Submarines programme, projected to span at least the next decade. These projects illustrate the shipyard’s capacity to undertake and deliver large-scale, complex contracts.
Profit Margins and Cash Flow
Pre-tax profits for the year stood at £6.878m, a substantial increase from £3.731m the previous year.
This marks the second consecutive year of pre-tax profit, though no final dividend has been recommended. Cash and cash equivalents also saw a rise, reaching £16.960m at the year-end, up from £14.174m.
The balance sheet reflects continuous strengthening, notably after £11m in shareholder loan repayments. This improvement affirms the company’s growing financial health and stability.
Employment and Staff Costs
The average number of staff employed by Cammell Laird during the reporting period climbed to 652, up from 598 the previous year. This rise in staffing levels is a positive indicator of the company’s expanding operations and increased workload.
Consequently, total staff costs, which include wages, social security, and pensions, rose from £30.857m in 2023 to £36.433m. Additionally, emoluments for directors and key personnel saw a substantial increase from £263,000 the previous year to £452,000.
Significant Orders
In December of the previous year, Cammell Laird secured an order to build a new Mersey Ferry, the first such order in 60 years. This project, designed by in-house naval architects and currently under construction in Birkenhead, is expected to be completed by the end of 2025.
This significant order not only boosts the shipyard’s order book but also reflects its expertise and capability in handling bespoke maritime projects.
Strategic Focus
Chief executive David McGinley highlighted the company’s strategic focus on growth and customer success. The management is concentrating on key projects like the Royal Fleet Auxiliary (RFA) Cluster Support Contract, the Dreadnought Programme, and the Type 26 Programme.
The strategy also includes securing new long-term agreements with commercial clients for regular maintenance and refits of multiple vessels. This approach aims to ensure steady revenue streams and sustained business growth.
Future Outlook
Looking ahead, the directors and management express high confidence in the company’s future. With a robust order book and a clear strategic plan, Cammell Laird is well-positioned for continued growth and success.
Cammell Laird has showcased remarkable financial growth, nearly doubling its pre-tax profits and securing a solid order book.
With strategic projects like the Type 26 naval destroyer and the BAM, along with a focus on long-term commercial contracts, the company stands on a strong foundation for sustained success.