MELDRUM Construction Services Group is eyeing further growth after an 18-month strategic review of the business led to it achieving a record profit.

The Gateshead-based group posted a £1.2m pre-tax profit for the year to November 30, 2019, with a £21.5m turnover. This followed a previous loss-making period after it was hit by major delays to two of its flagship projects.

The firm, which employs almost 200 people, predicts continued growth, with a strong order book of repeat business from existing clients and significant project pipeline for the rest of this year and into 2021.

The strong outlook from Meldrum comes after a major strategic review of the business which began in late 2018 and led to the formation of a new group structure. It also led to the creation of new divisions within the group, including a dedicated facilities management business, which is identified as being a key area of future growth.

Despite the economic challenges presented by the coronavirus pandemic, the group has continued to trade throughout the period, although some work has been subject to delay, and contracts with public sector and blue chip clients enable it to remain confident for 2020 and beyond. Meldrum, which was founded in 2001 by CEO Dave Meldrum, has become one of the North East’s best-known construction businesses, working across the North East and wider UK on an array of major projects. Recent commissions include its lead role in the Auckland Project in Bishop Auckland, which included the regeneration of the 900-year-old Grade I listed Auckland Castle, in what was one of the biggest and most significant recent conservation projects in the UK.

Mr Meldrum said: “We are in a strong position going forward and are delighted to report our most profitable year to date in our 20 year history. We can look to the future with confidence. Our strategic review of the business has left us in great shape, having created our new group formation and we are now more able than ever to drive accountability and responsibility down to delivery level.

“We are ideally placed to build on the strong progress we have made and are confident of further growth during this year and into the future. While clearly the coronavirus pandemic will have an effect on us, as it will on every business, we believe we will still be able to achieve our targets for 2020, which is a great position to be in.”