GMI Construction Group has tipped back into profit in its latest financial results.
Turnover for the year ended 30 September 2023 was £328.4 million, down from £360.2 million in the previous financial period.
Gross profit rose to £8.5 million, compared to £2.5 million in FY2022.
The group reported an operating profit in FY2023 of £248,752; in the previous financial year it recorded a £3.1 million loss.
GMI generated a pre-tax profit of £916,131 (FY2022 £2.3 million loss) and profit for the year of £773,298 (FY2022 £908,398).
The group reported a reduced cash position at 30 September 2023 of £10.2 million (FY2022 £33.6 million).
Retained earnings for GMI at year-end were £13 million, up slightly from £12.2 million the year before. No dividends were distributed in the financial period.
The Leeds-headquartered contractor operates in four regions across the North of England and the Midlands.
Strategy
“A deliberate and focused action of ‘controlled consolidation’ resulted in a reduction in turnover of 9 per cent from the previous year but more importantly, helped deliver significantly improved profitability with gross profit increasing by 227 per cent,” said the group.
“A critical factor in GMI’s increased profitability, and continuing forecast of future profits, was the decision to apply tough stress tests relating to the financial risk on larger projects.”
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