Northeast-based construction company, Meldrum Group has issued its 2022 accounts which recorded a fantastic set of results marking the return to the ‘new normality’ following the impact of COVID-19. The group, increased turnover from £26m in 2021 to £50m in 2022, whilst macro-economic pressures impacted gross margin, decreasing from 14% to 11%, the group managed to deliver a healthy net profit of £1.5m for the year.
Dave Meldrum, CEO of Meldrum Group said “Our detailed business planning and confident recruitment strategy has allowed us to ensure we were well prepared to deliver our planned increase in turnover. This is set against a challenging backdrop of the industry suffering a lack of skilled resources across a number of disciplines resulting in huge inflationary demands on wages as companies competed for fewer candidates. Our increased focus on recruitment and retention and the introduction of new initiatives in this area means we have maintained our workforce above the 200 mark, and we look forward to a future with a stable and motivated workforce.”
Meldrum has been successful in securing a number of significant contracts; some of which stretch into their 2024/25 pipeline, ensuring the business is robust and sustainable. The company remains cash positive and has a strong credit rating, scoring 85 out of 100 in its D&B rating. D&B (Dun & Bradstreet) is regarded as one of the blue-chip credit rating companies and is used by many companies worldwide in all industries to assess the financial strength of potential clients & suppliers, in order to assist them to manage their exposure and financial risk, so to be rated so highly is extremely welcomed by the group.
The report and rating confirm that even under the current headwinds that the British economy and construction industry are facing, Meldrum Construction Service Group Ltd are still regarded so highly, and should provide some comfort to its current and potential clients/suppliers that the company will continue to provide its quality service and construction needs for its clients and meet its obligations to its supply chain for many years to come.
Meldrum Group has been trading for over 20 years and although this has not been without its challenges at times, the results they have produced over the last few years in terms of growth, profitability and strong client relationships, the Board believe they are well placed and equipped to look to the future with great confidence.
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