Durham based MGL Group to make investments after profits rise 68%

County Durham construction company MGL group has pledged to make investments following a strong year in which profits and turnover increased significantly.

The Durham-based group, which brings together privately owned civil engineering and demolition businesses, has posted a 49% rise in revenue from £70.1m to £104.4m for the year ended March 31, while operating profit rose 68% from £3.1m to £5.2m. Pre-tax profits also rose year-on-year, from £3.04m to £5.15m.

The company attributed the rise in turnover to several North East high-value contract wins, as well as the integration of new operations within the group during the year. The business saw headcount rise from 371 to 408 in the financial year, and now has more than 450 employees, with 25 apprentices, two graduates, and several work placement students.

During the financial year the MGL Group subsidiary companies completed the purchase of assets and trade from Alnwick based KW Purvis Limited, a company based in Alnwick, Northumberland – a transaction which also saw 33 employees move across to the company.

Project successes include the demolition and site clearance at Pilgrim’s Quarter in Newcastle and Castlegate Shopping Centre, Stockton. It has also started on the foundations for the new SeAH Wind monopile facility in Redcar and the Woodsmith project, a mine being constructed two miles south of Whitby in the North York Moors National Park, has continued to progress.

Looking ahead, the firm said the board and senior management are “continuously looking at potential opportunities to expand and further diversify the business”.

It added: “We remain on the Teesworks Demolition Framework, which is potentially the largest demolition and site clearance project in Europe. This has the potential to generate a consistent flow of works in the next five years. Significant contracts have already been secured on this framework and considerable investment in new plant and machinery has been made to facilitate carrying out these works successfully.” In a strategic overview within its annual report, joint chief executives Mark Davison and David Elliott said continued investment in the workforce will play a crucial role in driving the business forward.

Mr Davison said: “As we reflect on this year’s achievements, it’s clear that our success is rooted in the dedication and expertise of our exceptional team. Our focus on nurturing a skilled workforce remains key in an industry facing labour shortages and supply chain challenges. Investing in the capabilities of our people ensures resilience and sustainable growth, enabling us to navigate challenges and seize opportunities in the ever-evolving landscape of our industry.”

Joint CEO Mr Elliott said he is optimistic for the future, adding: “Our latest results echo our unwavering commitment to social, economic, and environmental responsibility. Anchored in family values, we strive to excel in our projects and reinvest in the local community. Our charitable foundation, having contributed over £100,000 to worthwhile causes, underscores our commitment to making a positive impact.

“We remain committed to developing collaborative client relationships, nurturing our employees, and championing community-focused construction.”

The company secured a number of award wins in the year, including a trophy for trainee planner Jacob Perry, who won the apprentice of the year category at the Civil Engineering Contractors Association (CECA) North East Awards.

MGL Group also won Environmental Company of the Year and was Highly Commended for Project of the Year Under £1m for its work at Malmo Quay in Newcastle. Earlier in the year, the business also won the Constructing Excellence in the North East’s Innovation Award for the second consecutive year.