Profit is up by almost 12 per cent at contractor Magrock, despite the challenges of project delays and continuing economic uncertainty.
The Kent-based contractor, which specialises in new-build, fit-out and refurbishment projects, said it had a year of strong growth while it prioritised the reinforcement of its balance sheet.
Its annual report and financial statements for the year ending 30 September 2024 showed pre-tax profit of £4.5m, up from a little over £4m the year before.
In a strategic report accompanying the latest accounts, the contractor said it recognised the need to demonstrate strength “in an uncertain market”.
It added: “With a number of contractors going into administration strengthening client’s requirements for performance bonds, we have focused on increasing our balance sheet to ensure we can meet these requirements.”
Magrock noted that while there were indications of returning confidence in pricing and the availability of construction materials, significant uncertainty remained in the domestic and international economy.
“We are continuing to face project delays as the time period from tender to project award has typically extended due to developers continuing to wait for economic improvements through interest rate reductions,” it said.
“We deal with these changes by dedicating a significant amount of time to maintaining and expanding our trusted network of construction partners.”
Turnover rose from £68.5m to £83m over the same period, a level of growth it said it expected to continue next year as its projects grew in size and number.
Magrock ended the year with cash and cash equivalents of £23.6m, up from £13m the previous year. It held no bank loans.
With a forward order book in excess of £100m, it said it was on target for continued organic growth.
As well as investing in its headquarters and central support, the firm opened a new office in Coventry to help drive its expansion in the Midlands and North of England.
The year also saw Magrock’s workforce expand from 56 to 60, with the creation of several new departments.
The firm, which operates in the industrial, commercial, logistics and retail sectors, lists among its recent successes a £14.3m industrial scheme at Waltham Cross, London, and a £14.1 logistics project at Eastern Gateway, Ipswich.
Ongoing jobs include a 20,000 square metre industrial facility for Indurent at Avonmouth near Bristol, which Magrock announced yesterday (6 March).
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Kerry Lorimer