Due to a shift to more complex and higher-value projects, Leeds contractor GMI Construction Group’s turnover will triple to £360 million in the fiscal year ending September 2022. However, the rapid growth came at a cost, with the group incurring a £2.3m loss despite a £3m investment in new offices and digital construction systems. This marked the end of 37 years of profit for the company, which began as an industrial shed builder.
GMI said it was debt-free and had increased its cash reserves by nearly £11.5 million to £34 million, thanks to a profitable year, reports Construction Journal.
Currently, the group operates in four regions across northern England and the Midlands, with an average contract value of £17 million. Secured turnover for the current fiscal year has already surpassed £325 million, with repeat clients accounting for more than 70% of the company’s forecast turnover.
“GMI Construction has grown and developed in the immediate post-pandemic period as we implemented a growth strategy to win and deliver new contracts,” said Lee Powell, who was appointed CEO in the middle of the fiscal year 2021-22. “We have retained the support of a large number of existing clients and gained the trust of numerous firms and developers in areas where we have expanded our presence by opening new offices and hiring new dedicated staff.”