Wigan contractor boosts turnover with focus on bigger projects

Domis Construction has reported double-digit revenue growth after moving towards larger jobs.

The Wigan-headquartered contractor posted income of £162.6m for the year to 30 April 2024, up 11.2 per cent from the previous year’s £146.3m.

Pre-tax profit rose 4.4 per cent to £6.5m in the latest period, but the firm’s margin slipped slightly from 4.2 to 4 per cent.

Directors said they were “delighted” with “yet another profitable year”.

They added that the company had completed its tallest residential tower, the Viadux in Manchester, ahead of schedule.

“We have also commenced several projects including schemes for new clients such as Glenbrook and Fusion Students as we continue to expand our external relationships,” said the directors.

“The number of live construction projects remains consistent with previous years, with the increase in turnover generated from larger value projects rather than more of them, ensuring the same level of controls across all our work streams.”

Parent company Domis Property Group has moved to a new site in Wigan that hosts support functions, business units, plant and a materials distribution centre as well as training facilities.

Directors said that material and labour costs had stabilised over the past 12 months but added that the Building Safety Act would “result in delays for new projects becoming live”.

Nonetheless, they described themselves as “optimistic for the short and medium term” and noted a “significant pipeline of opportunities”.

A “significant percentage” of a £500m pipeline could turn to live projects over the next 18 months, added the firm.

Cash holdings, including equivalents, rose from £5.2m to £6.9m in the latest financial year.

Domis has £10m in loans repayable within one year.

Average monthly headcount grew from 145 to 164 employees but total annual wages fell slightly by £79,000 to £9m.

The firm paid out £3.9m in dividends, more than trebling the previous year’s £1.2m.

Its £162.6m turnover could be enough to enter the CN100 in 2025, given Seddon’s £160.7m was sufficient to be the 100th biggest contractor in the UK last year.

Domis is the exclusive new-build partner for developer Salboy, which is owned by Domis Construction director Simon Ismail alongside Fred Done, brother of Domis director Peter Done. The two brothers also founded bookmaker giant Betfred in the 1960s.