Profit doubles at London-based specialist

McGee Group’s pre-tax profit doubled in its most recent financial year, the company’s latest accounts show.

The accounts – seen by Construction News but not yet posted on Companies House – show that the group generated revenue of £121.8m in the year ending 30 November 2023. This generated a pre-tax profit of £12.4m and a margin of 10.2 per cent.

The previous year, McGee’s turnover totalled £83.3m with a pre-tax profit of £6.2m, delivering a profit margin of 7.4 per cent.

Employee-owned McGee, which was ranked fourth in the CN Specialists Index 2023 for demolition contractors, describes itself as a specialist engineering contractor working on a range of activities such as piling, groundworks and waste management.

The firm had no loan debt and held cash at bank of £14.6m at the end of the year, up by 42 per cent on the previous year’s £10.3m total.

An employee ownership bonus of £619,343 was paid after year-end – higher than the previous year’s £558,123 and calculated as 10 per cent of the Wembley-based firm’s pre-tax profit in 2021/22. The company employed a monthly average of 381 staff in its most recent financial year.

For the second year in succession, a dividend of £5m was paid out.

In his strategic report that accompanied the accounts, managing director Seb Fossey said McGee had invested in expanding its piling fleet “with both large and smaller specialist piling capability” – a move that was “aligned [with] our pipeline of future work”.

McGee now offers clients bespoke systems for shoring and facade retention, “driven by our in-house design capability”, he added.

Fossey said the firm’s directors foresee further profit growth in 2023/24, based on undisclosed secured turnover “and projects that we are either negotiating with clients or [which are subject to] post-tender discussions”.

McGee was among the 10 firms fined a combined total of almost £60m last March after a probe by the Competition and Markets Authority into bid rigging.

Its latest accounts emphasised a commitment to “top-down compliance” with regulations, including “rigorous” risk assessments and mandatory training programmes.

“Those in high-risk roles receive regular additional training, overseen independently by the group legal counsel, further underscoring our unwavering commitment to the highest standards of corporate governance,” the company added.

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