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Tue August 09 2022

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McGee employees get £1,600 bonus

27 Jun After its first full year under employee ownership, demolition contractor McGee Group is paying out its first bonus to the team.

The 375 employee beneficiaries of the employee ownership trust are sharing £604,446 under the bonus scheme, working out at about £1,600 each.

For the year ended 30th November 2021, McGee Group turned over £92.1m and made a pre-tax profit of £6.0m. This was a substantial improvement on the financial year 2020, when it turned over £76.0m and made a pre-tax profit of £1.6m, but still below the results that the company was achieving before the covid pandemic. In 2019 and 2018 it turned over £109m and 101m respectively, with pre-tax profits of £8.3m and £8.4m.

However, the group remains debt free, funding its working capital requirements from operating activities without recourse to borrowing. Year-end cash stood at £10.2m.

The accounts include a £2.4m provision for a fine expected to come McGee’s way. Last week it was one of 120 companies found guilty by the Competition & Market’s Authority of engaging in big rigging and collusion. [See our previous report here.]

McGee said it was now a different company from before the McGee brothers sold the business to theemployee ownership trust (EOT) in May 2020. It said: “McGee acknowledges historic Competition Act infringements as announced by the CMA. These infringements took place under the previous ownership and leadership structure.

“Throughout the period of the investigation, McGee has co-operated fully with the CMA. Having reached a final settlement position, McGee has certainty over the quantum of its fine and has made full provision in its previous audited financial statements. Accordingly, there will be no further financial impact on McGee arising from the investigation.”

Looking ahead, McGee said that the business was “well placed to continue to deliver high-profile and complex projects in central London with a strong pipeline of opportunities.”

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MPU
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