Profit surges at North East civils contractor

Pre-tax profit at MGL Group has risen by a third, according to the construction and demolition contractor’s latest audited annual accounts.

The firm said that “continued successful project completion and strategic partnerships” helped profit to grow from £21.9m to £28.9m in the year to 31 March 2025.

As turnover just inched up from £169.9m to £171.3m, its profit margin broadened from 13 per cent to 17 per cent.

MGL also improved its liquidity, with cash at hand rising from £34.2m to £44.1m.

It ended the year owing £1.4m in unsecured director loans, repayable within 12 months, compared with £345,830 in 2024.

The dividend payout more than doubled from £1.7m to £4.6m.

The firm’s wage bill rose by £5.1m to £34.8m, reflecting an increase in average monthly headcount from 441 to 463 employees.

Events in the year included a strategic investment in a soil wash plant at MGL’s Newburn site in Newcastle upon Tyne.

The plant entered service last March and processes up to 160 tonnes of construction and demolition waste per hour, the firm said.

MGL was a new entrant in last place in the latest CN100 table of top contractors, and its demolition arm was ranked ninth in the CN Specialists index.

The Durham-based firm, which focuses on projects in North East England, was established in 2008.

It initially focused on demolition work but later expanded into groundworks and road surfacing, which accounted for two-thirds of turnover in its latest accounts.

MGL posted turnover of £70m and pre-tax profit of £3m in 2022, rising to £104.4m and £5.1m respectively the following year.

But the firm’s directors said they do not expect the rapid growth trend to continue.

“Following the rapid growth in both turnover and margins over the past two years, the board of directors anticipate both turnover and profit levels will reduce in the following year and return to performance more in line with the measured growth achieved over the life of the business,” they noted.