In the year to 30th June 2023 Premier Modular’s turnover was down 6% at £105.7m (2022: £112.5m) and pre-tax profit was down 11% at £14.7m (2022: £16.5m).
Operating profit was down 16% at £13.9m (2022: £16.4m).
Overall, turnover was propped up by a doubling in sales from the company’s fleet of modular buildings, from £11m to £22m.
The hire of modular buildings saw a slight upturn in the year, with revenue rising from £18.8m to £19.6m.
However, construction contract revenue dipped from £51m to £49m and revenue from the delivery and erection of modular buildings collapsed, from nearly £32m in 2022 to less than £15m last year.
Premier Modular had been one of the beneficiaries of the covid crisis, supply units to NHS Nightingale centres. The unwinding of the national covid response has consequently had an impact. Turnover in the modular rental business dipped from £62m in 2022 to £57m while the permanent space division saw annual turnover fall from £51m to £49m in the 2023 financial year.
However, despite the dip, profits remain solid. Chief executive David Harris writes it the annual report: “The business inhabits a space in the market that few other companies do. It has a significant rental business with infrastructure type revenue streams, predictable cash flows into the future and a highly profitable sales business that offers genuinely superior solutions against traditional construction solutions. The group is in a position to where it is able to grow both though market sector growth and through gaining larger proportion of that market sector through its quality solutions.”
Premier Modular is based in Driffield in East Yorkshire, in the heartland of the UK’s modular building, cabin and caravan manufacturing industry. It is ultimately majority owned by Cabot Square Capital Partners.
