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Fri July 19 2024

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Regional contractor delivers 7.3% operating margin

10 Jul Targeting care home developments has helped east midlands contractor Kori Construction grow turnover by more than 50% and deliver an operating margin of more than 7%.

The Kori board, including (left to right) head of pre-construction Tony Robinson, finance director Sue Bird and managing director Jordan Connachie
The Kori board, including (left to right) head of pre-construction Tony Robinson, finance director Sue Bird and managing director Jordan Connachie

In the year to 31st March 2024 Corby-based Kori Construction turned over £54.1m (2023: £34.7m) and more than doubled its pre-tax profit to £4.0m (2023: £1.5m).

While many construction industry businesses struggled last year, Kori improved its operating profit margin from an already gold standard (for construction) 4.3% to 7.2%.

Its success appears to be down to focus.

Kori completed five purpose-built care home projects last year, totalling 332 beds, and has a further 10 such projects under construction. Its average project value last year was £10.8m.

“With a large undersupply of beds predicted over the next 10 years, alongside an ever aging population, we expect this demand to continue and out focus will remain strongly on the sector," said managing director Jordan Connachie.

“Within the wider later living sector, we have experienced increased demand in the retirement and independent living space, which reflects 35% of our pre-construction opportunities in the year.”

He added: “The company continues to monitor its cash position and closes the year with an increased cash position of £13.3m (2023: £3.02m). The company operates with zero borrowing and we do not anticipate any debt requirement whilst we continue to grow the business.”

Kori Construction was previously called SAC Construction until a rebrand in 2022.

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