Building contractor sets £200m turnover target
Midlands-based building contractor MCS Group is targeting a £30m increase in turnover this year, as it aims towards a revenue target of £200m by 2020.
MCS Group expects turnover in 2018 to reach £110m, a rise of around £30m on 2017’s figure of £79.7m, as it continues to increase its presence in the industrial, storage and distribution sector.
The directors devised a five-year strategic business plan in September 2012, which they said has been met and “significantly surpassed”.
Last year saw a period of consolidation following a management restructure to strengthen the business.
The Warwickshire-based company’s annual results for the year to the end of December 2017 showed turnover at £79.7m with pre-tax profits of £4.2m.
MCS Group managing director Keir Edmonds said profit margin was “very healthy”, being maintained at 5.2%.
He said: “We’re really pleased with how our strategic business plan has worked. Secured workload for 2018 is now at £110m, which is 38% growth on 2017, and opportunity and enquiry levels are stronger than ever. Our two-year plan, known as P20, sets a target of £200m turnover by the end of the 2020 financial year.
“We’re already looking ahead at 2019, where further significant but stable growth looks likely, based on conversations with many of our existing clients.”
He added: “We had a clear strategy at the end of 2016, as reported in the 2016 statutory accounts, that having sustained growth of 74% – from £48m to £83m – we would consolidate in 2017 while we implemented changes to the company structure and strengthened our management team.
“This was necessary to ensure we still produced the same quality of service we’re renowned for as well as ensuring the strong margin level was maintained. Being a privately-owned business means we’re able to make our own decisions based on what we feel is right for our business rather than what the industry or others dictate.”
The company is planning to build an 8,500 sq ft office headquarters at a site in Haywood Road, Warwick, in a £2.5m investment.
Founded in 2003, it was first based at Stoneleigh Deer Park, now Abbey Park, before relocating to its current base at Claverdon.
