Buoyant shipyard Laird almost doubles profits and boasts strong order book
Birkenhead shipyard, Cammell Laird, has almost doubled pre-tax profits and boasts a strong order book, it revealed in its latest annual accounts for March 30, 2024, filed at Companies House.
The results show it increased turnover during the year to £146.3m, compared with £122.69m the previous year.
This was driven by increases across most revenue streams, particularly on the cluster contract and commercial ship repair, and the signing of new contracts for Type 26, a new naval destroyer being built at BAE Systems Glasgow, and BAM, said chief executive, David McGinley in his report to the accounts.
BAM is a Buoyancy Assist Module, for BAE Systems, which supports the deployment of the Dreadnought Submarines from the BAE Barrow facility and is the first of its kind.
Cammell Laird is also working on the new Dreadnought Submarines programme, as part of a project which is expected to last for at least 10 years.
The pre-tax profit of £6.878m was an improvement on last year’s £3.731m, and the second annual pre-tax profit in succession.
Just as the previous year, no final dividend has been recommended.
Cash and cash equivalents stood at £16.960m at year end, up from £14.174m.
Chief executive, David McGinley, said: “The balance sheet has continued to strengthen, with an increase in cash compared to the previous year, pleasingly after £11m in shareholder loan repayments.”
The average number of staff employed by the yard during the reporting period was 652, an increase on the previous year’s average of 598.
This led to an increase in total staff costs, including wages, social security and pensions, from £30.857m in 2023 to £36.433m.
Emoluments for directors and key personnel also rose, from £263,000 the previous year to £452,000.
In December last year the company won an order to build the first new Mersey Ferry for 60 years. It has been designed by in-house naval architects and is being constructed in Birkenhead, ahead of completion towards the end of 2025.
Mr McGinley said in his report: “The business has a strong orderbook and the strategy is focused on growth and ultimately customer success.
“The focus of the management team will be on the RFA (Royal Fleet Auxiliary) Cluster Support Contract, the Dreadnought Programme and Type 26 Programme, as well as continuing to win new long term agreements with commercial customers to provide regular maintenance and refits on a recurring basis for multiple vessels.”
He added: “The directors and management look forward to the future with a high level of confidence.”