Login Register

Construction firm enjoys market boost

By Western Daily Press  |  Posted: August 21, 2014

Comments (0)

The rising housing market and recovering construction sector saw Midas Group profits shoot up by 73 per cent for the year.

But the South Bristol firm puts the performance down to its customer service strategy, now in its second year, pointing to 70 per cent of revenue coming from repeat business to back up the claim.

In the 12 months to April 30, Midas increased turnover 12 per cent to £202.9 million, from £180.5 million. And grew pre-tax profits to £2.1 million from £1.2 million.

Chief executive Alan Hope said "Despite continued pressure on margins, our sustained focus on customer service continues to deliver high levels of repeat business and we remain well positioned to maximise opportunities presented by the tentative recovery. Since launching our customer service vision and strategy two years ago, results have exceeded expectations and in the last 12 months we have achieved record customer satisfaction scores in excess of 80 per cent. It's no coincidence that in the same period we saw 70 per cent of revenues come from repeat business, contributing to double-digit growth in turnover, while our relentless focus on costs and risk mean we were able to deliver a 73 per cent increase in taxable profits. There is no doubt that the customer service culture in our company has led to improved performance, increased levels of satisfaction, more repeat business, and improved financial results."

Midas Group, which employs 450 people across offices mainly in the South West but its HQ in Winterstoke Road, is made up of smaller businesses including Midas Construction and Mi-space, which provides services to the building sector.

It was the latter that made the big contribution to growth, with pre-tax profits of £1.5 million – a rise of 350 per cent on last year, despite a small drop in turnover for the period. The business is working on projects including rejuvenating a housing estate in Plymouth and managing a refurbishment programme for Weston-super-Mare-based Knightstone Housing Association.

The construction arm is developing the flagship £11.6 million Filwood Green Business Park, set to open during Bristol's stint as European Green Capital next year to show off how commercial space can be green. It is also carrying out a £7.3 million refurbishment of Narrow Quay House office in the Harbourside.

Alan added: "We have seen some upturn in the market. Housing construction grew for the 15th month in April, and momentum across the rest of the construction sector rose for the 12th month in a row. But competition is still fierce, and to win work we must look to deliver the same customer experience as other, more consumer-facing industries.

Read more from Western Daily Press

Do you have something to say? Leave your comment here...

max 4000 characters