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It’s the Midas touch for construction firm
( Last Updated: 21-12-2007 )
It's the Midas touch for construction firm
Construction and property services company Midas has reported excellent financial results, doubling profits year-on-year.
Profit before tax (PBT) was £4.3m on a Group turnover for the 06/07 financial year of £203m, more than double the 05/06 figure of £2.1m. This performance reflected the company's decision last year to increase the investment in the infrastructure of its business, improve risk management and business controls and focus on enhancing service delivery to customers.
The company's operating margin of 2.1 per cent represents an upper quartile performance and the aim is to continue to improve this, with a medium term aim of exceeding the three per cent PBT mark.
The company ended the year with a cash balance of £30m, an improvement of £3.4m from the previous year. The cash performance at 15 per cent of 12 months rolling turnover is a top quartile industry performance.
The results follow a reorganisation and rebranding by Midas this year. The reorganisation has been designed to put more focus on high growth areas and to increase the company's opportunities for securing new projects. The rebranding, which complements the reorganisation, has been developed to simplify the structure of the business for the customer.
The Group now has five main trading companies: Midas Construction, Midas Retail, Midas Interiors, Midas Developments, and an Affordable Housing arm.
The Group is looking to achieve sustained growth of 15 per cent per year with the changes and is aiming to be a £300m turnover business within the next three years.
The 2006-2007 financial year also saw Midas performing well on its key performance indicators, delivering 2.5 times the industry standard for staff training days per employee, and being awarded a ‘Gold' standard by ROSPA for health & safety performance.
Chief Executive Alan Hope said: "This is an excellent set of results, and shows that we are already well on course to achieving our three year profit growth target.
"Just as important as the financial results are our other achievements during the year. We have a appointed a dedicated Head of People to continue developing our people strategy; we have invested in an in-house knowledge management system; and our training school, the Midas Academy, has delivered bespoke training for our people.
"We have also continued to demonstrate our commitment to the environment both through our own working practices and the sustainable construction solutions we provide for customers. For example we have delivered company-wide environmental training programmes and introduced waste reduction and recycling initiatives at all our office locations."
