A construction firm which has seen a big jump in profits is expecting demand for its equipment in the UK to drop this year.
Latest figures released by the world’s largest Caterpillar dealer Finning, which has its UK and Ireland headquarters in Cannock, show worldwide net revenue jumped up 23 per cent to £5.07 billion (CAN$8.215 billion) in 2022. Gross profit rose the same rate to £1.37 billion (CAN$2.223 billion).
The fourth quarter of the year saw worldwide net revenue of £1.48 billion (CAN$2.4 billion), up 34 per cent from the same quarter in 2021.
Net revenue in UK and Ireland operations grew slightly more, up 38 per cent from the same time the previous year with increased volumes across all lines of the business.
New UK and Ireland equipment sales were up 39 per cent, driven by higher power systems project deliveries, higher HS2 deliveries and robust demand in the construction sector. And earnings before interest and taxes increased 40 per cent.
Finning has supplied a large amount of equipment as part of contracts for the HS2 high-speed railway line.
The company, which is based in Vancover, said in a statement: “As equipment deliveries to HS2 have largely been completed, we expect lower construction new equipment sales in the UK in 2023 compared to 2022.
“In additional, overall demand for construction equipment in the UK is expected to decline in 2023 due to slowing economic growth rates.
“However, we expect strong demand for product support to continue, driven by HS2 activity and high machine utilisation rates across broader construction markets.
“We expect power systems business in the UK and Ireland to remain robust, including the data centre market. We have a solid backlog of power systems projects for delivery in 2023, and we are well positioned to capture further opportunities.”
Kevin Parkes, Finning President and Chief Executive Officer, said: “Looking ahead, we are mindful of the uncertain global business environment, including slowing rates of growth.
“On balance, we see constructive demand conditions in our diverse end markets where we expect strength in mining and energy sectors to more than offset slowing construction markets in the UK and South America.”
