Improved business structure helps group overcome downturn on fit-out and development sides
Midas Group has posted a 38% rise in pretax profit for the year ended 30 April 2008 despite a decline in work from its fit-out and property development arms.
The pretax figure rose from £4.3m the previous year to £5.9m as turnover edged up 3% to £210.1m. As a result the profit margin rose from 2.1% to 2.8%.
The south-west UK-based group said the increased profitability was down to an improvement in the structure of the business and better risk management controls.
The breakdown of turnover showed that while the construction division experienced a rise of 15%, the economic downturn meant revenue at the firm's Midas Interiors fit-out business fell by over a quarter to £38.8m:
- Construction: £167.6m (2007: £145.5m)
- Midas Interiors: £38.8m (2007: £52.6m)
- Commercial Developments: £3.7m (2007: £5.1m)
The pay of the highest-paid director rose 18% from £505,000 to £596,000.
A company statement added: “Despite deteriorating economic conditions every business within the group performed well. The group goes forward with a very healthy cash balance of £35m.”