Record breaking year strikes confidence for North East construction group

A North East construction group has achieved a record pre-tax profit following an 18-month strategic review and transformation of company structure.

Meldrum Construction Services Group, based in Gateshead, posted a £1.2m pre-tax profit for the year to 30 November 2019, with a £21.5m turnover.

It had previously experienced losses after being hit by major delays to two of its flagship projects.

A major strategic review of the business began in late 2018, leading to the formation of a new group structure, including the creation of new divisions within the group and a dedicated facilities management business – an area the organisation has identified as being a key area of future growth.

The group, which employs 200 people, has continued to trade throughout the coronavirus pandemic.

Although some work has been subject to delay, it is confident of continued growth having retained existing business and developed a strong project pipeline with public sector and blue chip clients into 2021.

Working across the North East and wider UK on an array of major projects, Meldrum’s recent commissions include its role in the Auckland Project, which saw the regeneration of the 900-year-old Grade I listed Auckland Castle, one of the biggest recent conservation projects in the UK.

Dave Meldrum, CEO, said: “We are in a strong position going forward and are delighted to report our most profitable year to date in our 20 year history. We can look to the future with confidence.

“Our strategic review of the business has left us in great shape, having created our new group formation and we are now more able than ever to drive accountability and responsibility down to delivery level.

“We are ideally placed to build on the strong progress we have made and are confident of further growth during this year and into the future.

“While clearly the coronavirus pandemic will have an effect on us, as it will on every business, we believe we will still be able to achieve our targets for 2020, which is a great position to be in.”