Consolidated accounts released today by The Metnor Group show a reduction in turnover for 2020 due to the pandemic but record growth is forecast thanks to a strong order pipeline and prestigious new contracts.
Based in Newcastle, The Metnor Group comprises three main trading divisions which operate in the construction, mechanical and electrical services and pressure testing sectors. Each division is a specialist in its own field and this individual expertise combined with the strength of the Group’s resources enables the company to deliver first class products and services to their customers and clients.
Like many other firms in the construction industry, the effect of COVID-19 has been seen across the Group. The impact of site closures – as provisions were made to operate safely and within Government guidelines – together with additional costs as sites were re-mobilised at reduced capacity, has resulted in both decreased turnover and margins. Turnover achieved in 2019 was £92 million whilst it was £68 million in 2020 and gross profit has been squeezed from 8.5% to 5.7%.
Chris Cant, CEO of Metnor Group said: “2020 was undoubtedly a very challenging year for the Metnor Group. The pandemic threw a number of challenges at us, but we have managed to come out of it stronger than we went in.
“I’m really proud that we’ve managed to keep our staff safe while delivering such prestigious projects to an exceptionally high standard of quality. Going forward, we’re looking to recruit a number of roles across all of our divisions to help us achieve our ambitious growth plans on some really exciting projects.
“Over the past two years, we’ve made significant changes to the business, bringing in a new team with a real commercial and collaborative focus. These changes are now bearing fruit. While it’s been a challenging time for all businesses, it’s important we continue to plan for tomorrow and invest in our people. Recent senior director promotions are testament to this and ensuring we develop future leadership signals the confidence and commitment we have in the market
“We’ve got a strong order book ahead and although 2020 was a difficult year for us, we have more targeted and profitable work secured in the pipeline as we head into the second half of 2021 and beyond and I’m optimistic about the year ahead.
We’re forecasting record turnover next year and then again the year after and it’s thanks to our fantastic team and supportive clients and suppliers that we’re tracking such ambitious growth.”
During these unprecedented times, the group has placed increased focus on cash management and the consolidated cash balance has been increased by £5.3 million to the year position of £7.8 million.
The impact of delayed projects together with a significant number of prestigious contract wins and a reduced cost base means the group is well placed for strong performance throughout 2021 and beyond with record growth forecast for all divisions.