Midas Group struggles to raise margin above 0.25%

Aaron Morby 11 months ago
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Exeter-based Midas Group is struggling to restore margins and improve profitability.

In latest accounts for the year to April 2019, Midas revealed it had now folded its loss-making retail business into the main construction arm.

Over the year the regional building group saw revenue slip slightly to £259m delivering a pre-tax profit of just £750,000, slightly up on last year.

Alan Hope, chief executive of the Midas Group, said the market had continued to harden suppressing operating margin, which slipped from 0.25% in 2018 to 0.23% in 2019.

The group’s Mi-space (UK) housing maintenance arm also faced a challenging year managing to little more than break even on revenue slightly down at £64m.

Revenue slumped at the specialist retail arm from £25m to £7m, which ran up a loss of £332,000.

These falls were offset by the main construction operation, which lifted revenue 11% to £190m and generated a pre-tax profit of around £500,000.

Hope said that this year’s cash balance closed at £22.7m (2018: 26.8m), reflecting the general tightening of credit terms for tier 1 contractors.

But he added: “The group enters the new financial year with a strong order book.

“With positions on 24 frameworks, this gives the board confidence that the Midas Group will be able to achieve steady profitable growth.”

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