Consolidated accounts released today by the Metnor Group show continued growth and a significant bounce-back from the COVID pandemic. With turnover for the Group reaching £81 million in 2021.
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.
The Group achieved turnover of £81 million, compared to £68 million in 2020 with gross profit margins improving from 5.0% to 9.9%. The cost-saving initiatives introduced in 2020 having had a positive impact for the business with workforce numbers being maintained throughout the period.
The Group’s focus on cash management has continued throughout and whilst some unwinding of the 2020 year-end balance of £7.8 million has occurred, the 2021 consolidated cash balance was £4.2 million.
A number of contract wins for both 2022 and 2023, also further support the Metnor Group’s future ambitions.
Chris Cant, CEO of the Metnor Group 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 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.
I’d like to say a special thank you to our fantastic team, supportive clients and suppliers, who continue to play a key part in our journey.”
The Metnor Group Performance – By Division
Within the financial year, Metnor Construction has turned over £63 million, compared to £48 million in 2020. This increase has partly been driven by the completion of projects delayed by the pandemic but mainly relates to new contracts.
The focus of the division continues to be on those markets where the Group has considerable experience, namely PRS (private residential sector), care homes, hotels and leisure, data centres and retail sectors: Projects for the financial year include;
- 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 North East 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 facility in Northamptonshire and a £17million project with Northumbria Healthcare NHS Foundation Trust.
With such a strong pipeline, the order book focus is now on 2023 and beyond.
Norstead, the mechanical and electrical contracting business, has achieved the return to profit that was anticipated on increased turnover – up to £20 million from the £17 million posted in 2020. This comes on the back of a lower cost base model implemented during the pandemic.
2020 also saw an emphasis on intra-Group work with projects completed including a leisure centre and hotel for Metnor Construction. Three other such contracts which continued into 2021, included a PRS scheme, data centre and medical facility. With over 60% of Norstead’s projects in 2021 coming from third parties, this percentage is set to increase considerably in 2022 on the work already secured.
The division has already won projects worth £23m for 2022 and is expecting to see revenue in excess of £30 million at year end, returning the firm to its highest levels.
Recently completed and current projects in the pipeline include the development of The White Room at The British Museum, Kettering Medical Centre, Addenbrookes RSC Hospital in Cambridge, Cote Brasserie prep relocation, London and Kingston Dementia Care Centre and ongoing plant replacement works for John Lewis. The firm is also involved in the Market Quarter scheme in Rugby, providing 360 one and two-bed apartments for rent.
Healthcare continues to be a strong sector for Norstead with NHS work on the Dorset and Yorkshire coasts set to dominate the results of 2022 and beyond.
The division also recently opened a new office in Maidenhead and doubled the size of the team operating there due to ongoing growth and new projects in the South East.
The 2021 activities and results of Metnor (Great Yarmouth) Limited, the specialist pressure testing business, have been significantly affected by the bounce back in air travel as well as surging oil and gas prices. The division is well financed and able to manage resources to enable it to continue to trade profitably.