UK-based construction expert Merit has enjoyed another year of growth with a 46% increase in consolidated revenues to £88.4m.
The Northumberland-headquartered industrialised construction and digital manufacturing specialist owes its success to several key factors.
Firstly, the introduction of a proprietary platform design together with increased productivity, which leapt by 71.9% between 2016 and 2022.
Secondly, operating from one of the largest construction manufacturing facilities in the UK at 263,000 sqft.
Merit invested nearly £5m in new intellectual property
Merit further enhanced its offsite approach in 2023 with a 44,000 sqft expansion at its Cramlington-based factory.
The extended high-bay facility became operational in June 2023.
Merit also invested nearly £5m in new intellectual property to continually optimise and refine its product offering.
The integration of advanced technology and software positions the company as leaders in its field of digital manufacturing.
In line with its growth plans, Merit continues to expand its presence within key sectors including healthcare, bioscience and pharmaceutical, semiconductor, aerospace, and battery tech.
Key performance indicators
Key performance indicators from the annual results for the year ending 2023 are:
- Consolidated revenues £88.4m
- 46% increase in 2022
- Gross profit £17m
- 54% increase in 2022
- EBITDA of £9.1m
- 99% increase in 2022
- Gross cash at year end £6.9m
- 3% increase in 2022
- Net assets: £17.2m
- 55% increase in 2022
Merit’s improved financial performance is supported by a pioneering approach that enables it to produce technically complex buildings through offsite construction and digitalised manufacturing with a Pre-Manufactured Value (PMV) of 75-95%.
These methods enable the company to deliver fixed cost, sustainable, high-quality, bespoke-specification buildings to clients in a third of the time compared to traditional methods of construction.
Tony Wells, CEO of Merit, said: “The results are testament to our commitment to excellence and innovation as we favour an automated and digital-led approach, which delivers complex high-quality buildings, three times faster than traditional solutions.”
“Our product platform designs are proving to deliver real, tangible growth, and are built to enhanced quality standards compared to traditional construction whilst also promising better performance, quality, reliability and 60yr longevity,” Wells added.
Net Zero also remains a key driver for us and is a focus of significant R&D investment in 2024
“Net Zero also remains a key driver for us and is a focus of significant R&D investment in 2024,” Wells continued.
“Our parametric cost modelling enables real time cost feedback during design development to deliver affordable fixed price cost certainty – unique in construction,” Wells explained.
Bringing online increased factory automation for further productivity improvement and the introduction of our V7 platform will be key objectives for Merit in the coming year,” Wells concluded.
Merit's recent projects
Merits recent projects include:
- A £35m community hospital in Berwick, estimated to be 10,500 sqm
- Solihull Hospital’s new Elective Hub (Operating Theatre Block)
- A new build sterilisation services and decontamination supercentre for Northumbria Healthcare NHS Foundation Trust
- A new 2000m2 therapy-led unit for Norwich Community Hospital, which is expected to be completed within five months.