Profits Grow at GMI Construction Following Consolidation Period
3/2/25
GMI Construction has seen its profits increase following a period of 'controlled consolidation'.
In 2024 the gross margin increased to 3.2 per cent, up from 2.6 per cent in 2023, despite the settlement of a long-standing project, without which gross profit margin would have been 6.3 per cent, or £15.2 million.
Key projects during this period included, Avon Street, the expansion of Leeds City College's new Mabgate campus, and a multi-million pound extension and upgrade to the Centre of Excellence in Sustainable Advanced Manufacturing on behalf of Sunderland City Council.
In order to achieve its growth strategy, GMI focussed on strategic evaluation of all projects in line with its key principles of 'Price it Right', 'Contract it Right' and 'Deliver on Time'. The result has been to continue business performance improvement after recovering from the impacts of inflation and economic uncertainty, which impacted throughout the construction industry over the last few years.
The strategic approach has led to an improved pipeline of high-quality work for the year ending 30th September 2025, with the firm already securing turnover with a value of £217 million for the current financial period.
The strategy to reduce turnover has resulted in increasing profit before tax to £1.04 million and a significant improvement in cash at bank of £19.3 million.
Gareth Jones, Group Managing Director of GMI Construction, said: "The business is targeting stable and controlled growth for future financial years, applying the rigour and stress tests to carefully consider risks on projects.
"Significant improvements in systems and information now allow data-driven assessments. These are used in conjunction with prudent business practices and a risk-averse strategy to enable sound commercial decision making.
"The four regions that GMI operates in are all now established and thriving. These are Yorkshire, North East England, North West England and the Midlands.
"This regional focus will continue, empowering each region to drive opportunities and growth through their individual relationships and knowledge whilst being supported from group for central functions coupled with controls for overall group consistency and to leverage efficiencies."
Source: https://gmi.co.uk/news/gmi-construction-group-plc-reports-strong-profits-growth-for-year-ending-sep-30th-2024/