Consolidated accounts released by the Metnor Group show a significant bounce-back from the covid pandemic with turnover up 19% to £81m in 2021 but still not back to 2019’s £92m benchmark.
Pre-tax profit for 2021 was £1.3m, turning around pre-tax losses of £3.3m and £2.7m in 2020 and 2019 respectively. Gross profit margins improved from 5.0% in 2020 to 9.9% in 2020.
The improvement was attributed to cost-saving initiatives introduced in 2020. The company’s focus on cash management has continued throughout, the board said, and while some ‘unwinding’ of the 2020 year-end balance of £7.8m has occurred, the 2021 consolidated cash balance was £4.2m.
Chief executive Chris Cant said: “Despite a challenging couple of years, we’re really proud of our growth and the calibre and scale of our new client wins. Covid was no doubt a difficult time for all businesses, but by remaining agile, staying true to our values and investing in our team, I’m proud to say we have come out stronger, with both turnover and profitability up on previous years.
“Continuing supply chain issues and soaring prices of course remain at large, but due to our robust tendering procedures we’ve been able to deliver projects on time and on budget.
“During that time, we’ve made significant changes to the business, defining and driving our core values and bringing in new operational and commercial professionals to add to our existing team.
“Our growth also comes on the back of celebrating Metnor Construction’s 20th anniversary, a new office in Maidenhead for Norstead Group [Metnor’s M&E subsidiary] and some of our largest single contract wins to date. With a strong order book for the rest of 2022 and beyond, we’re optimistic about the year ahead, forecasting record turnover next year and again the year after.”
Turnover for Metnor Construction in 2021 was £63m, up 31% from 2020’s £48m. This increase was partly driven by the completion of projects delayed by the pandemic but mainly relates to new contracts.
Metnor Construction focuses on the private residential sector, care homes, hotels, data centres and leisure and retail sectors: Projects in 2021 included:
- three leisure centres in London, Leicestershire and North Norfolk
- data halls in Welwyn Garden City and Wembley
- a care homes in Bromley
- two hotels in the northeast of England
- a private rented sector (PRS) scheme in Rugby.
Further projects started in late 2021 and 2022 include a PRS scheme in Warrington, a private medical clinic in Northamptonshire and a £17m project with Northumbria Healthcare NHS Foundation Trust.
Norstead, the mechanical and electrical contracting business, has achieved the return to profit that was anticipated on increased turnover – up from £17m to £20m. This comes on the back of a lower cost base model implemented during the pandemic. Norstead has already won projects worth £23m for 2022 and is expecting to see revenue in excess of £30m, returning the firm to its highest levels.
Recently completed and current projects in Norstead’s pipeline include the development of The White Room at The British Museum, Kettering Medical Centre, Addenbrookes RSC Hospital in Cambridge and ongoing plant replacement works for John Lewis. The firm is also involved in the Market Quarter scheme in Rugby, providing 360 PRS flats.
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