Merson Group Announce End of Year Results
- Merson Group increases EBITDA to £1m despite difficult trading conditions
- 2018 end of year results shows a turnover of £31.9m
- Year on year gross profit holds level at £9.9m
Merson Group has today announced its end of year business results, with a turnover of £31.9million.
Merson was established in 1938 and has since grown to be one of the UK’s leading providers of signage and rainscreen façade systems. During the last year the business has experienced mixed market conditions, with the Banking and Retail sectors coming under pressure, whilst the Cladding and Infrastructure sectors experienced growth. Overall the turnover of the group was level year or year at £31.9m, and improvements were made to gross margin at 31.1%, (up from 30.8% in 2017) mainly achieved through productivity gains. This combined to deliver an increase in EBITDA to £1.1m, a significant result in the face of difficult market conditions.
In 2019, Merson Group plan to roll out new complimentary products and services to their clients, of which the results will be expected in 2020.
Below Merson Group CEO Roddy Angus reflects on the year’s results and looks ahead to 2019/20:
“The Board is pleased that, despite a difficult market, sales, margins and EBITDA all improved in 2018. Nothing radical, just steady progress towards higher management targets.
Market conditions varied across our activities:
In Infrastructure, we saw a solid performance as we continue to strengthen our offer in the road, rail and airport environments. Of particular note is the work we are doing on the new Elizabeth Line where we have completed our original scope at 6 main stations (including 3 at Heathrow) and are now addressing the requirements at 22 feeder stations.
In Signage, we are witnessing probably the biggest shake-up in the retail, automotive and banking sectors that we have experienced this century. But, through working closely with key clients on our Place Branding offer, we are assisting in the repositioning of a number of major brands as they adapt to the impact of online transactions. Away from the high street, we are delighted with the end result at Tottenham Hotspur's new stadium - of particular note was the work our team recently completed to assist in the preparations for the landmark opening game.
In Building Products, the market has been mixed with strong evidence of projects being held back by Brexit. Despite this we grew our cladding sales through partnering with a tight group of envelope contractors who we work with under our strategic partners banner. Meanwhile our Rainwater Management business performed well and, although we did not grow the top line, it continues to make a solid contribution to the Group.
Merson Group is a people-focused business! Our staff are our most precious asset and they have stuck with the business through some demanding disruption in our markets. By adopting 'agile' practices and new systems they are driving the performance of the business and are determined to deliver exemplary results for clients.
Merson has never stood still and we have a number of exciting development plans that we are actively pursuing. These will extend existing markets and add complimentary products and services. We expect the first of these to come to market in the second half of 2019 but do not expect results from them until into 2020.
Brexit is once again disrupting our markets but, together with our compliment of 300 staff and the ongoing support of our financial backers, the Board is determined to drive the business forward regardless.”