Newcastle-based Metnor Group has today published its results for the year ended 31 December 2016.
The figures reflect a 49% increase in turnover in the year from £57.4 million in 2015 to £85.6 million in 2016, with a corresponding increase in gross profit from £9.1 million to £13.6 million.
Whilst the results show that group profit before tax has fallen to £8.2 million in 2016 (from £11.0 million in 2015), underlying profits across the group are up as the 2015 figures included a one-off profit of £8.5 million from disposing of investment properties.
Commenting on the figures, Keith Atkinson, Group Managing Director, said he was delighted with company performance and with the direction in which the group is heading.
He said: “Our 2016 results are particularly pleasing as the early part of the year was disrupted by the uncertainty caused by the EU referendum and, at one stage, we were concerned we would be unable to meet our targets.
“Fortunately, the second half of the year saw activity accelerate across all of our divisions. This has continued into the early part of 2017, which is an encouraging sign for the year ahead.
“Undoubtedly our best performer in 2016 has been Metnor Construction, which continues to grow and prosper under its new management team.
“Our construction turnover has more than doubled to £58.9 million over the last two years and 2016 has seen us complete a number of prestigious projects for blue chip clients around the country.
“We were delighted to see this performance recognised in the recent Northumberland and Tyneside Business Awards with Metnor Construction named as 2017 Company of the Year.”
The figures also show a large cash inflow in the year, with cash balances at the end of 2016 totalling £14.5 million. This has enabled the group to pay off its remaining bank borrowings, further strengthening its balance sheet for the year ahead.
Mr Atkinson continued: “Despite the Brexit uncertainty, our property division was able to complete a number of deals in the year and whilst we never expected to repeat the one-off results achieved in 2015, the division still contributed a healthy £3 million to our group profits as well as a significant cash inflow.
“Elsewhere in the group, Norstead, our mechanical and electrical contracting business, and Metnor Great Yarmouth, our oil and gas pressure testing business, both made positive contributions to group profits.
Mr Atkinson also thanked the group’s employees, adding: “The recent growth in the group’s activities has seen us welcome more than 25 new employees to the group over the last 2 years. They, together with our long serving employees, have been instrumental in helping the group achieve its targets and their hard work, loyalty and dedication is never taken for granted.”
Looking ahead, Mr Atkinson expects 2017 to be another successful year for Metnor Group. He said: “2017 has started off well across all of the group’s trading activities and we have a healthy order book for the year ahead. With a strong and growing balance sheet this gives us a solid base from which to grow.”
To find out more about Metnor and its companies please visit www.metnor.co.uk