Kori Construction, based in the East Midlands, has achieved significant growth, enhancing both turnover and operating margin.
- The company reported a turnover increase of over 50%, reaching £54.1m, up from £34.7m in the previous year.
- Operating margin improved from 4.3% to 7.2%, attributed to a focus on care home projects.
- Five newly completed care home projects contributed to this success, with more developments underway.
- Managing Director Jordan Connachie emphasised a strong cash position, with ongoing focus on the care sector.
In a notable year of growth, Kori Construction, the East Midlands contractor, has reported a remarkable 50% rise in turnover, reaching £54.1 million for the year ending 31st March 2024. This growth is reflective of strategic decisions in project targeting, particularly within the care home development sector, which has seen a consistent demand due to demographic trends.
Kori Construction’s operating profit margin has seen an impressive improvement, rising from a notable 4.3% to 7.2%. This enhancement in profitability is largely due to the company’s focused approach towards the construction of purpose-built care home facilities, which amounted to a total of 332 new beds across five projects in the last year. The director board, led by Head of Pre-Construction Tony Robinson, Finance Director Sue Bird, and Managing Director Jordan Connachie, attributes this growth to a precise targeting of market needs within the care sector.
The company currently has ten additional care home projects in the pipeline, which promises to further its influence in the sector. The average value of these projects was recorded at £10.8 million, highlighting the significant scale and investment involved. Managing Director Connachie has highlighted the projected undersupply of care home beds over the next decade, coupled with an ageing population, as critical factors driving ongoing demand for such developments.
Additionally, Kori Construction has capitalised on opportunities within the wider ‘later living’ sector, extending its market reach into retirement and independent living spaces. This area constituted 35% of their pre-construction opportunities for the year, underscoring the company’s adaptive strategies and market acumen.
A robust cash position, which increased to £13.3 million by year-end from the previous year’s £3.02 million, further illustrates Kori Construction’s financial health. Notably, the company operates without borrowing, a testament to its sound financial management and strategic foresight.
Once known as SAC Construction, the company has rebranded to Kori Construction since 2022, reflecting its evolution and commitment to future growth.
Kori Construction’s focus on the care home sector and prudent financial management underpin its significant growth trajectory.
