Acquisition, Diversification and a New-Look Merson Group

Merson Group has today announced annual results, a new-look brand and “Building Environments” – a new, unique and all-encompassing service offering that will be provided to its growing base of blue chip clients in the construction, transport, retail, automotive and financial sectors.

Merson was established in 1938 and has grown significantly in recent years. Annual figures announced today show the company turning over £24million, a far cry from the £5million it turned over when current CEO Roddy Angus led a MBO to buy the business in 2002. Today’s figures from the year ending September 2015 only partly include the sales of recent acquisition ASG, with the combined group targeting a turnover of £40million in this financial year.

Building Environments:

Originally a signage manufacturer, the acquisitions of CGL Facades, ASG and i-level Retail have broadened the company’s business activities and it has today announced a unique and all-encompassing service offering named “Building Environments”.

The new service combines the strengths of each of Merson’s individual businesses to provide a combined offer that encompasses external architectural facades, signage schemes, interiors, digital display and point-of-sale – services that large clients would traditionally have to source separately and manage individually.

The launch of Building Environments coincides with a rebrand of the business and the launch of a new-look website which can be found at mersongroup.com.


Trading Conditions:

With a number of leading supermarket names amongst its key clients, the well-publicised difficulties in that sector have proved challenging for Merson in 2015. However, falling revenues in this area have been offset by an increase in international consulting projects, strong growth for CGL Facades (the company’s architectural facades business), and success in the rail sector as the number of Train Operating Company clients has increased.

Merson currently has teams active in Brazil, Qatar, Italy and Turkey on rail and airport infrastructure projects. This combines with considerable consulting activity in the UK in the same sectors and notably on London Crossrail (the new Elizabeth Line) and Heathrow Airport.

Key Points:

- Merson Group announces annual results showing a turnover of £24million, a small increase from the previous year.

- Gross profit is up to 32.4% from 30.3% but net profit is down due to acquisition costs relating to the purchase of Ace Signs Group (ASG).

- The acquisition of ASG and further organic growth is expected to result in an annual turnover of £40million in the next financial year.

- Diversification in the UK and an increase in international consulting allow the company to sustain growth despite difficult trading conditions in the supermarket sector.

- Merson Group launches a new-look brand and wider service offering to customers that will come under the banner of “Building Environments”.

- “Building Environments” is an all-encompassing service offer that provides external architectural facades, signage schemes, interiors, digital display and point-of-sale for blue chip organisations around the UK.

QUOTE FROM MERSON GROUP CEO RODDY ANGUS:

“The most significant event for the business this year was the acquisition of ASG. This acquisition broadens our client base, introduces innovative manufacturing processes and widens the scope of our product offering. Our offering now encompasses a number of trading brands that function under the umbrella of ‘Building Environments’; a concept that defines our ability to work with clients to prepare their physical spaces in the right way for their target market. Whether it is external building facades and signage or internal fixturing and point of sale, we look after our client’s brand in the physical world.

2016 will be an exciting year for Merson Group - our order book from existing clients is strong and our pipeline of prospects is significantly better than at any point since the financial recession.”


Posted by Roddy Angus
31th March 2016
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