Ambitious building contractor sets target of £30m increase in turnover
Midlands-based building contractor MCS Group is forecasting a sustained period of significant growth as it targets a £30m increase in turnover this year.
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 has been met and surpassed. Last year saw a period of consolidation after a management restructure was implemented to strengthen the business.
The Warwickshire-based company’s annual results for the year to 31 December 2017 showed turnover at £79.7m with pre-tax profits of £4.2m.
MCS Group managing director Keir Edmonds 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 £200million 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.”
The directors are focusing on a new strategy to take advantage of the plethora of opportunities being presented by the commercial property market place, ensuring that the group achieves the correct mix of sector type and size of project whilst giving due consideration to the required business structure and efficiency.
Keir 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 a 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.