MGL Group has seen a significant boost in revenue, reaching £171.3 million, driven by strong sector demand and a continued focus on strategic investments in technology and expansion.
The Durham-based contractor reported a strong performance for the year ended 31 March 2025, with revenue increasing from £169.9 million in 2024, £104.4 million in 2023, and £70 million in 2022.
Civil engineering and surfacing brought in the most revenue at £117.5 million, followed by demolition, hire, and haulage at £35.6 million.
Operating profit surged 29.4 per cent, rising from £20.8 million to £27 million, while pre-tax profit increased by 31.9 per cent to £28.8 million (FY2024: £21.8 million)
This growth led to a rise in gross profit margin to 31.3 per cent, up from 25.4 per cent the previous year, reflecting its strength in the infrastructure and industrial sectors.
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The company’s success was supported by strategic reinvestment in plant and equipment, including GPS-enabled excavators, hybrid machines, and low-emission vehicles to enhance project efficiency and sustainability.
MGL’s asphalt division, Tynedale Roadstone, expanded with acquisitions of quarries in the Scottish Borders, boosting supply capacity.
The company also launched a new Soil Washing Facility at MGL Demolition’s Newburn site, recycling construction waste into aggregates.
Its net assets increased by more than 50 per cent to £55.3 million (FY2024: £33.3 million), while cash grew to £44 million from £34.1 million.
Looking ahead, following rapid growth in turnover over the past two years – 64 per cent – directors anticipate both this and profit levels to reduce, as the business returns to more sustainable, measured growth.
The company, however, anticipates reported performance to continue to generate profitability for the business and a growth in net assets year-on-year.
Bosses added that, as economic conditions strengthen and project investment accelerates, the company remains committed to investing in sustainable technologies with further plans to expand its headquarters.
Joint chief executive, Mark Davison said: “We’re delighted to see the rewards of everyone’s efforts during this period reflected in such encouraging financial performance.
“These figures underline that our strategic approach to growth is paying dividends for the group.
“Since 1971, we have been driven by core values, strong client relationships and operational excellence.
“With the talent and dedication of over 500 employees, we remain committed to delivering essential services that reshape the built environment and create a lasting, positive impact on the communities we serve.”
Founded in 1971 by Alan and Sheila Davison, MGL Group started as a small, family-run civil engineering business with just one employee and a second-hand caravan.
It has since grown into one of the North of England’s largest privately-owned construction companies, with a team of nearly 500 professionals.
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