AG cuts losses by £1m despite construction sector headwinds
3rd Sep 2026
Co Tyrone paving and building products manufacturer AG Paving and Building Products (AG) has reduced its annual losses by more than £1 million as operational improvements helped strengthen the business during another challenging year for the construction sector.
The multi-site company, which employs more than 200 people across the UK and Ireland, reported a pre-tax loss of £513,634 for the year ended 31 December 2025, according to newly filed accounts at Companies House.
While AG remained loss-making, the latest results marked an improvement of more than £1.16m on the previous year, while turnover increased from £27.8m to £28.7m.
The improved performance follows a wider programme of financial and operational measures, including the repayment of £19.5m in bank loans as part of a 10-year debt reduction strategy outlined in the company’s 2024 accounts.
The directors described 2025 as a year of “clear operational and financial progress”, with measures introduced during the year helping to improve margins and efficiency.
They said gross profit margins had benefited from tighter commercial discipline, a stronger product mix and increased operational efficiency.
The results come against a backdrop of continued pressure across the construction industry. While inflationary pressures eased during the year, AG said it continued to face higher wage costs, along with increased prices for raw materials, energy and other operating inputs.
The company’s workforce reduced slightly during the year, falling from 218 employees to 207. However, staff costs increased as AG continued to invest in pay, training and skills development.
The directors said attracting, retaining and developing skilled employees remained a key priority for the long-term success of the business.
AG said it continued to manage cost pressures through regular margin reviews, disciplined pricing decisions and a focus on quality, customer service and product differentiation rather than competing solely on price.
The company also continued to progress its sustainability agenda, reaffirming its commitment to reducing Scope 1 and Scope 2 carbon emissions by 30% by 2030 under the Climate Action Pledge. It also achieved Platinum status in the Northern Ireland Environmental Benchmarking Survey for the third consecutive year.
Looking ahead, the directors said AG was entering 2026 with a strong order book and pipeline of opportunities across the UK and Ireland.
Since the start of the year, the company has supplied products for several high-profile projects, including facing brick for Belfast’s Loft Lines development in the Titanic Quarter and paving products for Queen’s University Belfast’s Advanced Manufacturing Innovation Centre (AMIC) in Newtownabbey.
While acknowledging that economic conditions remain uncertain, the directors said the improvements made over the past year, together with tighter cost control, had improved the company’s position.
AG said it would continue to invest selectively in innovation, operational efficiency and its workforce as it works towards returning to sustainable profitability.
Alongside its main manufacturing hub in Fivemiletown, AG operates from Toome, Pomeroy and Carryduff, supplying paving, walling and facing brick products to commercial and residential markets through builders’ merchants and direct-to-customer channels.
