MCS Group turnover soars to £110m at 4.35% profit margin

Grant Prior 5 years ago

Expanding national contractor MCS Group has reported turnover of more than £110m – up £40m on the previous year.

MD Keir Edmonds warned margins could tighten this year
MD Keir Edmonds warned margins could tighten this year

Pre-tax profit hit almost £5m in 2018 as annual results recorded margins of 4.35%.

The company is now on course to hit turnover of around £150m this year as it continues to increase its presence in the industrial, storage and distribution sector while also exploring new opportunities.

Managing director Keir Edmonds said:“The MCS team should take huge pride in the success of the business as it continues to prosper, grow and deliver excellent results both financially and with its delivery of projects.

“This is only possible by the collaborative approach and team ethic that is applied throughout the structure of the business which is reflected by the high volume of retained customers.

“The business delivered another great year of growth, breaking the £100m turnover mark, whilst again delivering above industry margin.

“The group’s business plan continues to deliver organic growth delivered by a highly engaged staff team and an effective integrated supply chain.

“Since 2014 turnover has increased 230% from £33m to £110m. This growth has been consistent, only pausing in 2017 to allow necessary management restructuring to take effect.

“Our repeat business level remains consistent and strong at 70% which, given the level of growth in the period, demonstrates our reputation and reliability.”

MCS Group is a major contractor in the motor retail sector and has a firm presence in the industrial market.

Commercial, retail and self-storage sectors remain “key areas of delivery and opportunity.”

Edmonds said: “The group continues to consistently deliver above industry average profits.

“Whilst profitability is essential, the Board considers the quality of project delivery equally important, as our reputation in the marketplace is paramount.”

The group expects its margins to tighten this year reflecting challenging industry conditions.

MCS continues to be cash generative and debt free which is reflected by the growth of the balance sheet that sits at a healthy £8,306,239.

At 31 December 2018 secured workload stood at £94,450,000 for 2019, underpinning further growth aspirations with a planned target of £150m turnover for this year.

Edmonds added: “Key markets have not been adversely affected by Brexit at present.

“However, the final nature of the UK’s exit from the EU does represent a degree of uncertainty.

“The fast track nature of our projects also means that we are not adversely exposed to changing market conditions. The board continue to carefully assess opportunities for further expansion and strategic diversification.

“The continued growth and profit provide reassurance to the board to be able to look at significant forward investment in new headquarters to accommodate the growing dynamic team and business.”

MCS recently relocated to a £2.5m new headquarters in Warwick.

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