Turnover and profit each fell last year at offsite manufacturer Merit Group Services, although the firm hopes to see long-term growth from its investments in research and development (R&D) and automation.<\/p>\n
The Northumberland firm posted turnover of \u00a379.8m for the 12 months ending 30 June 2024.<\/p>\n
This was down 10 per cent from the previous year\u2019s \u00a388.4m, while the group\u2019s pre-tax profit fell 24 per cent from \u00a37.6m to \u00a35.8m.<\/p>\n
Merit said political uncertainty had caused project delays and deferments but added that its pipeline of opportunities was \u201cgreater than ever\u201d and the size of potential deals had \u201crisen significantly\u201d.<\/p>\n
The firm said it had made \u201csignificant\u201d investment in R&D, including \u201calmost \u00a38m in new intellectual property (IP)\u201d.<\/p>\n
The group also invested \u00a35.7m in fixed assets, including advanced automation to enhance efficiency and shorten project timelines.<\/p>\n
It added that additional preassembled modules and prefabricated offsite development subproducts had been designed over the financial year to \u201cfurther enhance our offering\u201d.<\/p>\n
Merit Group Services\u2019 cash at hand fell from \u00a36.9m at the start of its latest financial year to \u00a32.8m by the end of it.<\/p>\n
It had \u00a32.8m of cash in the bank at the end of the year \u2013 down from \u00a36.9m at the start of it \u2013 but this total included a \u00a32.6m overdraft.<\/p>\n
The accounts said: \u201cThis balance is expected to rise as further profits are retained in the business for future investment in facilities, capital equipment and people.\u201d<\/p>\n
The firm had \u00a35.7m in bank loan debt repayable within 12 months, up from \u00a3898,645 the previous year.<\/p>\n
It also owed \u00a35.4m in loans to be repaid in more than one year, an increase on the previous year\u2019s \u00a34.7m.<\/p>\n
The firm\u2019s average number of employees rose from 305 to 357 in the latest year. Its annual wage bill rose from \u00a314.9m to \u00a318.7m.<\/p>\n
Merit Group Services said it was in a \u201cnet current liabilities position\u201d last June but that was \u201cexpected to reverse during 2025\u201c.<\/p>\n