IJM Corp Acquires Stake in JRL Group
In November 2024, IJM Corporation Bhd (IJM Corp) announced the acquisition of a 50% stake in UK-based construction firm JRL Group Holdings Ltd for £50 million (RM283 million). This strategic move aimed to expand IJM Corp’s business into the UK and strengthen its core construction capabilities.
According to IJM Corp, the transaction involved subscribing to 50% of JRL’s enlarged equity. The capital injection from IJM was intended to improve JRL’s financial position, enhance liquidity for working capital, and support future growth.
Despite JRL recording losses exceeding £80 million since 2022, IJM Corp proceeded with the acquisition. The company justified the decision by pointing out JRL’s financial recovery in 2024, during which it generated £311 million in revenue and £9 million in pre-tax profit for the first six months of its financial year.
JRL also boasts a significant order book worth £1.5 billion, which, according to IJM Corp, ensures revenue visibility for the next three years. IJM further stated that this complements its own outstanding order book valued at RM6.4 billion.
“Driven by improved operations, this financial recovery positions JRL as a more resilient and competitive player in the UK construction market,” IJM Corp said.
The acquisition aligns with IJM’s ambition to strengthen its UK market presence through value chain optimisation and enhanced project execution. JRL’s subsidiaries—including Midgard (a main contractor), J Reddington (concrete specialists), McMullen Facades, Ark M&E, and London Tower Crane Hire—align with IJM’s goal of increasing exposure to the UK construction sector.
JRL’s expertise in rail-adjacent and over-track developments is expected to support IJM Land Bhd, IJM Corp’s property arm, in a joint venture (JV) with Network Rail Property. The JV, which focuses on urban regeneration and mixed-use developments on strategic railway sites in London, has a gross development value (GDV) exceeding £3 billion.
Who is JRL?
Founded in 1996, JRL is a diversified construction group offering integrated solutions in piling, groundworks, concrete frameworks, architectural design, and mechanical and electrical services.
Since 2021, JRL has also ventured into property development, building a portfolio of seven sites comprising build-to-rent and co-living units, with an estimated GDV of £700 million.
JRL’s construction arm, Midgard, was the main contractor for IJM Land’s first UK property project, Royal Mint Gardens Phase 1, which was completed in 2019.
IJM Corp’s Group CEO and Managing Director, Datuk Lee Chun Fai, described the investment in JRL as a strategic step to “strengthen our construction portfolio, leverage JRL’s technical expertise and UK market presence, unlock new growth opportunities, and execute transformative projects.”
JRL Managing Director John Reddington welcomed the partnership, stating, “This collaboration reinforces our position and allows us to build on our success with projects like Royal Mint Gardens Phase 1 while advancing our development pipeline in the UK.”
Current Status of JRL
As of 2025, JRL Group Holdings Limited remains an active company headquartered at 4 Elstree Way, Borehamwood, Hertfordshire, WD6 1RN.
The company is expected to submit its financial accounts for the year ending December 31, 2024, before September 30, 2025.
While JRL Group Holdings Limited has shown stable financial performance, its subsidiary JRL Modular continues to struggle. In January 2025, JRL Modular reported increased revenue but remained loss-making.
JRL Modular, acquired by JRL in 2022 to save 200 jobs at its Newark factory, saw revenue rise from £14 million to £23.1 million in 2023. However, pre-tax losses widened from £2.3 million to £8.3 million.
Other JRL subsidiaries also faced financial difficulties:
Midgard (main contractor) reported a £9.92 million pre-tax loss, down from an £8.65 million profit despite revenue rising from £536 million to £612 million.
J Reddington (groundworks and concrete) reduced its losses to £746,000 from £8.16 million, though revenue dropped from £396 million to £352 million.
Meanwhile, JRL Properties Holdings Limited is expected to submit its accounts for the period ending April 30, 2025, by January 31, 2026.
Despite these challenges, JRL Group Holdings Limited remains operational, with its subsidiaries working to overcome financial and operational hurdles.
Can IJM Corp Succeed in the UK?
In its latest move, IJM Corp secured a 143-year leasehold interest in the historic 1-5 London Wall Buildings, now known as 25 Finsbury Circus, for £72.5 million (RM407.9 million).
This acquisition aligns with IJM’s strategy to geographically diversify its property investment portfolio and strengthen its presence in the global real estate market.
However, IJM Corp is now facing reputational risks due to a corruption scandal involving its chairman in connection with the RM170 million graft case linked to former Prime Minister Ismail Sabri Yaakob. The Malaysian Anti-Corruption Commission (MACC) is currently investigating the matter.
While IJM Corp remains financially strong, this controversy could affect investor confidence and its long-term prospects in the UK market. The key question now is: Can IJM Corp overcome these challenges and achieve sustained success in the UK?
