Groundworks and civils contractor M&J Evans is upbeat about the future of the housing market, despite a second year of declining turnover.
The Walsall-headquartered firm saw revenue dip slightly to £323.3m from £334.3m, in the year to 31 December 2024, newly published accounts show.
Its pre-tax profit rose to £3.8m in 2024 from £2.2m in 2023, although remained the second smallest profit for the company since 2012, before it grew to become a large, national business.
In 2022 it generated a £23.4m profit, and in 2021 it reached £17.6m on just £250.6m turnover.
The firm paid out £132,775 in redundancy costs in 2024, following £373,668 in 2023, with its average monthly headcount reducing to 321 from 423, returning to almost the same number it employed in 2022.
This resulted in a lower annual wage bill of £22.7m versus £26.2m in 2023.
Chief executive Chris Southgate said the company had focused on overhead control in the period due to the housebuilding market remaining subdued.
It also refinanced loans due for expiry, increasing liquidity levels, with M&J Evans’ cash at bank rising by almost 40 per cent to £25.2m.
Southgate said the firm’s business plan to become more efficient and grow had seen it deliver a strong performance in what was its first year of trading in the East of England.
Nationwide, the contractor won £330m of orders in the 12 months, up from £153m in 2023. At the year-end, the order book stood at £504.0m, up on the previous year figure of £446.3m.
Southgate added: “Looking forward, the business remains positive, especially following lower and now stabilised interest rates together with a strong commitment made by the newly elected government to tackle the housing crisis in the UK by accelerating housebuilding through planning reforms, support for the affordable housing sector, and reinstatement of housing targets for local authorities.
“Although uncertainty around timing does remain, improving sales rates are being reported by housebuilders and the business anticipates further increases in house sales and build rates to start to recover during 2025.”
The firm, which was 50th on the CN100 2024 list of the largest UK contractors based on its 2022 turnover, increased its net assets to £52.3m from £46.2m.
Other expenditure in the period included a £105,000 rebrand and £223,000 on legal costs.
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Ian Weinfass