Crookes back in the black and building for the future

Family-owned building company Richard Crookes Constructions has returned to profitability after enduring one of the toughest periods ever in the sector.

Richard Crookes Construction managing director Jamie Crookes

Family-owned building company Richard Crookes Constructions has returned to profitability after enduring one of the toughest periods ever in the sector.

The Sydney-based company, which started in 1976, posted a profit after tax of $2m in the second half of the 2024 financial year following an after-tax loss of $23.9m in the six months to December 30, according to a financial statement lodged with the Australian Securities & Investments Commission.

Managing director Jamie Crookes said it was a difficult period during the pandemic when they had 45 projects at the end of 2021 on fixed price contracts.

“A large portion of them were loss making,” he said. “It was the unknown that really knocked us around. We now only have three jobs going from that period and we’re also seeing a more stable market – almost all the jobs we had from January 2022 have been profitable.

“There is more capacity on the market, a lot more trades in the market and our ability to deliver on time and deliver profitably is greater than it was previously.”

Across the 2024 financial year RCC made an after-tax loss of $21.8m compared to a $6m loss in FY23, with several subcontractors on a number of the now completed 2021 residential projects going insolvent, which had a flow-on effect in the first half on FY24. Over the same period the company reported a slight dip in earnings of $1.46bn in the 2024 financial year compared to $1.5bn in FY23.

During FY24 RCC was recapitalised by the four shareholders putting $30m into the company and increasing its net asset position increased to $89.8m. “We didn’t need to do that because we had plenty of cash in the bank but we wanted to do that to support the business,” Mr Crookes said.

RCC has about 40 live projects across NSW, ACT and Queensland. With more than 850 staff and 3000 subcontractors on its sites every day, it is one of the largest employers in the NSW construction industry.

The company has a $15bn pipeline of work for FY25 and splits its commitments between government and private clients.

It is currently delivering the Cowra Hospital Redevelopment, Melonba Education Campus, City Tattersalls Club Redevelopment and three Metro stations as part of the Parklife Metro Consortium for Sydney Metro – Western Sydney Airport. RCC recently completed the Sirius Building as well as a number of other high-profile projects in Sydney’s CBD.

It is also delivering 2100 student accommodation beds across four projects in NSW.

Mr Crookes said he expected RCC to be profitable in the 2025 financial year. having returned an after-tax profit of $2.8m in the first quarter of FY25. “We’re on track to make about $15m in the 2025 financial year,” he said. “We still have those three jobs from 2021 on our books but we should get back to pre-pandemic profit in 2026.”

Originally published as Crookes back in the black and building for the future