Turnover rises at diversified family contractor

Profit at Munnelly Group has inched upwards despite a 24 per cent increase in turnover.

Revenue for the year to 31 March 2024 rose from £119m to £147.2m, according to the family-owned contractor’s latest annual accounts. Chief executive Phil Munnelly said the revenue growth reflected an “unwavering commitment” to low-risk, sustainable and diversified revenue streams in construction and infrastructure support services.

However, pre-tax profit remained relatively static at £1.5m compared with £1.4m the previous year.

The contractor’s cash reserves reached £5.4m as of March 2024, “reflecting the strength of our business model”, Munnelly said.

Overheads rose by just 4 per cent despite an £8.7m increase in the company’s annual wage bill as monthly average headcount grew from 660 to 838 staff.

Munnelly said his family’s firm remains focused on “operational excellence but only in markets where we can thrive and create lasting value”.

These markets include residential construction, for instance, with involvement as a subcontractor in John Sisk’s NE02/NE03 development (pictured) at Wembley Park, north west London.

The firm reduced its short-term bank loan debt from £233,000 to £198,000. It also owed £1.1m in loans repayable after 12 months, down from £1.3m the year before.

A dividend of £717,000 was paid out, lower than the previous year’s £938,000.

In his strategic report accompanying the accounts, Munnelly emphasised the role of innovation and technology in shaping the company’s future.

“We have implemented several new systems and tools to automate processes, reduce errors and increase productivity. Our team has also been working on developing new software solutions to enhance our products and services,” he said.

The firm has invested in cybersecurity measures while also improving its data analytics capabilities, Munnelly said.

“By leveraging data insights, we can make more informed decisions and better understand our customers’ needs. Our analytics team has been working on developing new algorithms and models to help us identify trends and patterns in customer behaviour,” he added.