McLaughlin & Harvey procurement delays: risk and cashflow lessons for project teams
Reviewed by Joe Ashwell
First reported on The Construction Index
30 Second Briefing
Procurement delays on major schemes cut McLaughlin & Harvey Holdings’ turnover by 30% to £612.1m for the year to 30 June 2025, from £870.4m, as multiple large civil engineering and construction projects slipped into mid-to-late 2025/26. Despite the volume hit, operating profit rose to £12.8m and pre-tax profit to £18.2m, with both the Northern Ireland and Scottish construction arms contributing positively. The group reports net assets of £67m, cash of £148m and says most 2025/26 budgeted turnover is already secured in the order book.
Technical Brief
- Procurement-stage prolongation is explicitly delaying commencement of “a number of scale projects” into mid–late 2025/26.
- Management links delays to industry-wide lengthening of tendering and award processes before site mobilisation.
- Directors warn the 2025/26 financial year will again see turnover timing distorted by late starts.
- Cash on hand of £148m provides substantial working-capital cover for long pre-construction and bid periods.
- Net assets of £67m give a relatively strong balance sheet for bonding and framework prequalification.
- Both Northern Ireland and Scottish construction divisions remained profit-contributing despite reduced work-on-site volumes.
- Order book already secures the majority of 2025/26 budgeted turnover, reducing short-term bidding exposure.
Our Take
Despite the 30% turnover drop, McLaughlin & Harvey’s £148m cash balance and £67m net assets give it a stronger liquidity position than many UK regional contractors in our Infrastructure coverage, which should help it ride out delayed public-sector procurements in Scotland and Northern Ireland.
The improvement in profit before tax relative to the previous year, even on lower revenue, suggests McLaughlin & Harvey has tightened cost control and project selection, a pattern also seen in several other UK contractors in our 320 Infrastructure stories as they pivot towards higher-margin frameworks rather than pure volume growth.
With guidance pointing to recovery in the mid to latter stages of the 2025/26 year, the company is likely to be targeting the next wave of UK infrastructure and public building frameworks highlighted across our 820 Projects-tagged pieces, where delayed awards are now starting to move again, particularly in devolved administrations.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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