Construction firm sees profits jump thanks to strong margins

NORTH East construction company Meldrum has seen profits jump in a year of consolidation as it looks to the future with a pipeline of opportunities worth £500m.

- COREENA FORD Business writer [e-mail]

The Dunston-based business, which also has bases in Cambridgeshire and Teesside, operates divisions covering everything from construction and civils, to facilities, building services and a new fire engineering business.

Accounts for 2024 show turnover stayed flat at £54.3m, from £54.9m in 2023, but strong margins saw its operating profits jump from £1.9m to £2.4m, while overall profit for the year was £1.86m, up from £1.58m.

Directors described 2024 as a year of consolidation and preparation for growth, hailing the company for its “remarkable resilience” against a backdrop of significant economic challenges over the past few years, which have affected the wider constriction sector, including inflationary pressures and skilled labour shortages.

During the year Meldrum which has been working on the new M&S food store at Kingston Park and a new bar at Theatre Royal in Newcastle also switched to become an Employee Owned Trust (EOT), to give everyone in the company a stake in its future.