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Commercial Property

Profits rise at Durham construction group MGL despite dip in turnover

The Durham based group has put plans for a new HQ on hold after the pandemic led to new ways of working

MGL demolition teams working at the former Bank of England site in Newcastle(Image: handout from MGL)

North East construction group MGL has seen profits rise despite a drop in turnover, in part thanks to a new subsidiary.

In accounts for the year ending March 31 2020, the Durham-based business, which also has sites in Newcastle and North Yorkshire, saw turnover fall by £5m to £65.3m, but operating profits increased slightly to £3.4m.

The company said that the principal reason for the fall in turnover was the completion of two unusually large contracts towards the end of the financial year.

It said that a new subsidiary providing specialist cable support services to the offshore wind farm industry had helped improve profitability, though it added that profit levels were likely to fall in the current year due to the Covid-19 pandemic.

Chief executive Gary Smith said: “With respect to results in the current financial year, despite a difficult start to the period in April and May when losses were incurred, the company has recovered and has remained profitable in its first six months of this financial year.

“Such an achievement would not have been possible without the commitment, loyalty and resolve of our dedicated employees across the whole group.”

MGL said that it had used the Government’s furlough scheme in the early weeks of the pandemic when sites were closed down under Government guidelines.

It added that plans to move to a new head office - planned because of a lack of space in the current premises - had been put on hold after new working practices in the pandemic had led the company to question the need for it.