Tyneside construction firm Meldrum has hailed record profits despite big challenges battering its industry.
The 220-strong builder, which has offices in Dunston, Stockton and Cambridge, reported operating profits of £1.94m for 2023, up from £1.61m the year before. Newly filed accounts show Meldrum grew turnover from £50.05m to £54.93m during the year, while managing to weather the impacts of manpower shortages, resulting wage inflation and wider economic turmoil.
The documents show bosses are anticipating further growth through this year with some contracts already secured that will provide work through to 2025. The firm is eyeing a £520m pipeline of work with further contracts also said to be at final negotiation stage.
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Founder and CEO Dave Meldrum said the firm was looking to the future with "great confidence". In a review of the business he said there had been pay rises to support staff retention and recruitment, both of which had been successful.
He added: "The demand for construction activities in 2023 stabilised, however inflation still presented major pressures on the costs of goods, materials, energy and consultants; 2024 is expected to be a year where this inflationary pressure is reduced and commodities prices stabilise, however goods which are shipped via the Suez canal have recently seen an increase in costs as shippers of sheet material and timber seek alternative longer routes to avoid the risk of the attacks on ships by Houthi rebels."
He added: "The board believes, that despite all the significant economic challenges, the group has demonstrated its remarkable resilience and delivered another improved financial result for 2023. During 2023 the group invested further and appointed additional members to the board, further strengthening the skills and knowledge, to equip and underpin the wants and needs of the various operating delivery companies."
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During the year Meldrum opened a Duxford office in Cambridgeshire, on the back of a £9.8m project completed in the area. The move is intended to expand its reach into the South East where it is eyeing a strong pipeline of potential work.
Mr Meldrum, who started the business in 2001, said: "As a group we continue to look for opportunities for growth and to de-risk, opening a Cambridge office was a logical step for us, similarly we have also launched a new business; Meldrum Fire Engineering. Meldrum Fire Engineering offers the services of fire stopping, fire door surveys and core drilling, not only adding further growth opportunities in turnover and margins, but also vertical integration of trades and skills to the current group’s portfolio.
"In addition, this further addresses any risk of potential quality issues by subcontracting out this discipline, as the new company gains to benefit from the extensive quality control processes which are at the core of the Meldrum groups delivery methodology.”