Merit announced it has maintained revenues and invested for growth in the 15-month period ending 30 June 2020. Merit and its subsidiaries combine the benefits of a unique approach to offsite manufacturing with innovative zero carbon facility designs to deliver bespoke civil construction projects across multiple sectors, including healthcare, pharmaceutical and biotechnology, semi-conductor, aerospace and energy.
Managing Director Tony Wells said: “We maintained good profitability, with strong cash generation, ensuring our credit rating remains high. This was despite lower-than-expected turnover in the latter months of this financial period because of COVID- 19-related contract award delays. We have invested in the development of a range of pre-assembled modules (PAMs) that can be applied to most client situations. These standardised products can be integrated into unique tailored designs for fast solutions to time-sensitive client needs, where speed to market is crucial.
“We continue to be at the forefront of zero carbon facility designs, already improving energy efficiency and eliminating fossil fuels from all our projects. This brings significant operating savings as well as helping tackle climate change. One area where we expect our significant pipeline of opportunities to convert in 2021 is healthcare, pharma and biotech, which are now served through our recently-launched Merit Health subsidiary. The government is only going to meet the combined challenges of an ambitious hospital building programme and the NHS’ net zero carbon commitment through the innovative thinking of companies such as Merit.”
Turnover from continuing operations was £37.1million (increase of £2.9million) with pre-tax profit for the 15-month period, £802k (down from £1.28million), with major projects secured in emerging markets such as cell and gene therapy and innovative battery manufacture.
Tony Wells added: “Our financial strength, together with our faster, cheaper and more efficient manufacturing and construction methodology, makes our offer compelling to virtually any customer embarking on a new project. Whilst already operating one of Europe’s largest offsite manufacturing facilities, we have further expanded the space to 270,000ft2. This room to operate, combined with our approach to offsite manufacture, enabled us to continue working on client projects throughout the pandemic and positions us perfectly for growth in 2021.”