Despite unprecedented challenges, a concrete specialist sees increased profits.
- MPB Structures reports a rise in pre-tax profit to £4.7m.
- Turnover boosts despite inflation and supply chain impacts.
- Diverse project locations and sector involvement mitigate risks.
- Strategic contracts including HS2 enhance financial resilience.
Amid a tumultuous economic climate, MPB Structures has demonstrated resilience by recording an increase in pre-tax profit to £4.7 million for the year ending 30 September 2023, surpassing its previous year’s profit of £3.9 million. This financial gain comes despite a backdrop of high inflation which has notably affected the construction industry.
The company attributed some of the inflationary pressures to the geopolitical tensions resulting from the Russian invasion of Ukraine in early 2022. This conflict precipitated a surge in material costs, particularly for steel reinforcement—a critical component in concrete construction. Additionally, the firm has faced a significant rise in construction insurance rates, influenced by claims related to cladding issues in other sectors.
MPB Structures operates intensively within the concrete-frame construction sector, serving commercial, student, residential, and infrastructure projects. It has seen an increase in turnover from £99 million to £112 million, largely driven by an uptick in contracts. The firm has emphasised how the breadth and diversity of its projects have insulated it somewhat from abrupt and sweeping risks, given its operations across major cities like London, Birmingham, Manchester, and Leeds.
One of the notable projects during this period was the work on the HS2 rail line in Saltley, Birmingham. This involved a contract worth £16 million under the Balfour Beatty / Vinci joint venture, where MPB provided reinforced concrete for a kilometre of the rail line, including the construction of three bridge structures. Additionally, significant contracts were secured with renowned contractors and developers such as Berkeley Group, Winvic, and Sir Robert McAlpine.
This strategic diversification has bolstered MPB Structures’ capacity to withstand industry challenges, reflected in its cash reserves increasing from £2.5 million to £3.1 million.
MPB Structures continues to demonstrate robust financial health, overcoming significant industry challenges.
