NuGen Properties

Lee Marley takes care after inflation erodes profits

Lee Marley Brickwork, which does scaffolding as well as brickwork, saw its turnover rise by a third in 2021 to reach nearly £57m, a new high for the company, but profits were down by the same proportion because contract prices were fixed before inflation pushed up costs.

Pre-tax profit in 2021 was £1.06m, down from £1.56m in 2020. The operating profit margin was down from 4.1% in 2020 to 2.3% in 2021.

Owner-director Lee Marley said: “Whilst the group recorded record turn over in 2021 of £56.88m, a rise of 32% over 2020, it was a difficult year in terms of financial performance. As with most other construction businesses a significant proportion of our work rolled over from 2020 due to delays cause by Covid-19 lockdowns. This, combined with significant inflationary pressures in the second half of the year and the fixed price nature of most construction contracts, left the group’s margins to be significantly reduced. However, a strong market presence and high levels of management have assisted in mitigating these pressures.”

He is not making that mistake again.

“Looking forward to 2022, the group has secure a record order book and has also negotiated clauses with clients to ensure that material price increases are mitigated either by forward purchases or price re-negotiation with our clients,” he said.

During 2021 Lee Marley Brickwork, noted for its training programme, reached a peak of 59 apprentices, with 49 brickwork apprentices and 10 scaffolding apprentices.

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Dan Morten 18/01/22

Easy to work with, Jordan and the team were professional and were easy to communicate with.
Would highly recommend.

Di Hayes 20/08/22

NuGen Properties built an extension to the rear of my property, replacing the old conservatory. I am so pleased I chose this company. From the initial quotation, through the build and after they were professional, polite & well mannered. They kept the site tidy throughout the build and kept me informed of each stage as it happened. The work was finished to a good standard and I have had nothing but compliments on their work. I am already planning for them to come back and do some more work for me in a few months. I would 100% recommend them.

Bradley Eyles 20/06/23

Nugen were fantastic throughout the works they carried out on my property, Jordan provided constant updates and ensure any questions I had were always answered. All works were completed in a timely fashion, on budget and exceptional customer service. Highly recommend!

Sonny Carter-heyward 29/02/22

Brilliant service, renovated my house to make a dream a reality. Thanks guys

sitemanager 22/01/23

Great firm to communicate with fast and good quality work.