GMI triples revenue but records multimillion pound loss

GMI Construction’s turnover has tripled to £360m after what it described as a “buoyant year”, although this was offset by a £2.2m pre-tax loss in the year to 30 September 2022.

GMI attributed the turnover increase to its expansion into new locations such as the North East of England and a “business improvement programme” that allowed it to take on more higher-value and complex projects. The firm moved its North East division into larger premises in Stockton-on-Tees last month in a bid to secure more business in the region.

It recorded a turnover of £121m in the prior.

The increase means GMI met its £350m-turnover target for 2022, which it laid out last January. GMI also appointed Lee Powell (pictured) as its chief executive last January to lead the firm’s growth strategy.

The strategy was implemented to “win and deliver new contracts, with new clients in new locations”, the firm stated in its accounts, adding that the turnover increase came despite the “ongoing challenging economic conditions, with high inflation, unavailability of materials and shortage of labour”.

The firm said the pre-tax loss followed a decision to inject more than £3m into the business. The contractor said the “large-scale investment” was “deployed in new people and systems, new technology and new regional offices”. More than half went into technology and digital construction, according to the full-year accounts filed with Companies House on 8 April.

GMI is debt free, which allowed it to increase its cash revenue from £22.3m to £33.7m. The contractor focuses on new-build, refurb and fit-out projects in sectors including industrial, logistics, commercial and retail.

Demand for warehouses soared over the course of the coronavirus pandemic, mainly due to the increased interest in online shopping.

The firm said further investment will also ensure that the group can cope with new legislation surrounding building safety and the golden thread.

The bounce in turnover could push GMI up the CN100 by as many as 50 places after it snuck in at 100^th place last year.

In 2023 the firm said it expects “continued sustainable growth” in revenue and profit, and it had already secured more than £325m-worth of work for the year. More than 70 per cent of the work forecasted is with repeat clients, which GMI said were “core” to the group’s growth strategy. The firm added that it was also “gaining new clients from established and reputable backgrounds”.