Merseyside shipyard Cammell Laird says annual revenues are up 20% to £146.3m after ‘one of the most successful years in its history’ with profits also nearly doubling. Tony McDonough reports
Cammell Laird is reporting “one of the most successful years in its history” after seeing big percentage rises in both revenues and pre-tax profits.
In the 12 months to March 30, 2024, the Birkenhead shipyard saw revenues rise 20% to £146.3m, according to accounts just filed at Companies House. Last year the business returned to profit after five years of losses. Its latest pre-tax profit figure is just under £7m, up from £3.7m last year.
This is a remarkable turnaround for the company after chief executive David McGinley had previously described 2020 and 2021 as “some of the most challenging times in the group’s history”.
That was following the heavy losses sustained building the £200m polar research vessel RRS Sir David Attenborough. It was, says Mr McGinley, “one of the most complex ever undertaken in the shipyard”.
Cammell Laird’ workforce successfully delivered the vessel but design, production and supply chain issues on the build caused costs to rise significantly. As a result owner Peel Group had to bail out the business to the tune of almost £25m.
In December 2023 Cammell Laird managing director Mike Hill said the business, which employs more than 600 people, had undergone a “complete overhaul”.
Cammell Laird now operates as part of a wider group called APCL Group. This also includes A&P Group, as well as Birkenhead engineering firm Neway Industrial Services. This group comprises shipyards in Birkenhead, the North East and the South West of England.
In the latest annual report Mr McGinley said the yard had been successful in securing a number of new contracts during the year. Cammell Laird is also into the fifth year of two 10 year contracts to support the Royal Fleet Auxiliary (RFA).
A number of RFA vessels came into the yard for refits and repairs during the year. They included RFA Tiderace, RFA Tidesurge, RFA Tideforce and RFA Fort Victoria. Two new vessels were added to the cluster contract, RFA Proteus and RFA Sterling Castle.
In December 2023 Cammell Laird signed a £26m contract with the Liverpool City Region Combined Authority to build a new Mersey Ferry. This will be the 16th Mersey Ferry the yard has built since 1836.
As part of this work Cammell Laird has assessed the existing two vessels – Snowdrop and Royal Iris – and a decision will be made which one of those two will be taken out of service to make way for the new boat.
Elsewhere Cammell Laird won a contract to build two mooring dolphins at Tranmere Oil Terminal and it is continuing its work with BAE Systems on the Dreadnought submarine programme.
It also secured a framework contract with BAE in Glasgow to support the building of the Type 26 frigate for the Royal Navy. It has completed units on HMS Birmingham and is due to start work on HMS Belfast.
And Cammell Laird continues to carry out repair and refit work for Mersey Ferries, CalMac Ferries, Isle of Man Steam Packet Company, Stena Line, Seatruck Ferries, P&O and Svitzer Marine.
It also secured more than £7m from the Government’s Clean Maritime Demonstration Competition for its Green Power Shore project. This is a collaboration with Integrum Power to develop new shoreside power for ships in dock.
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Mr McGinley said: “The group has had one of the most successful years in its history, winning new contracts and further securing its order book for the coming years.
“This strong order book allows the business to focus on further investment in its workforce through both the apprenticeship programme and training new and existing talent across the business.”
He concluded: “The business has delivered two consecutive years of profit and has begun to reduce the balance on the shareholder loan.
“The business has a strong order book and the strategy is focused on growth and ultimately customer success… the directors and management team look forward to the future with a high level of confidence.