In the year to 30th November 2022, McGee Group (Holdings) saw its turnover slide 10% to £83.3m (2021: £92.2m), returning a profit after tax of £5.2m (2021: £5.6m).
In May 2020 the brothers Michael, Brian and John McGee sold their London-based contracting business, McGee Group, to an employee ownership trust, which currently has 410 beneficiaries – employees with at least 12 months’ service.
The trust is committed to pay out 10% of profits after tax to the beneficiaries. With profit after tax of £5.2m last year (2021: £5.6m), this works out at £1,361 each, which employees received after the end of the financial year. The previous year they got £1,612.
Under its employee-ownership McGee remains debt-free, funding its working capital requirements from operating activities, and is in growth mode. Turnover in the current financial year is set to be above £120m – near 50% growth in a single year – with a corresponding material increase in profit after tax expected.
Group managing director Seb Fossey said: “Our team of engaged employee-owners have once again delivered a solid set of financial results and the outlook for the business is very positive as we continue to focus on securing technically challenging opportunities.
“Our ability to mitigate risks and build authentic, collaborative relationships has been the cornerstone of our success in recent years. We have continued to see good progress over the reporting period, with external stakeholders now increasingly clear on the benefits of our strategy and operating model.
“We still firmly believe our value proposition is unique – it’s more than just saying we can integrate our activities – it is the culture, behaviours, and organisational design that we have developed and bedded in over time that truly create benefits for our clients.
“Having secured some of the largest and most prestigious specialist engineering packages in London, we are inevitably now anticipating that our revenue will exceed pre-covid levels in FY23 and beyond into FY24 while retaining our operational effectiveness.”
During the financial year, McGee started several major schemes for its clients, including demolition and enabling works on a new office development at 7 Millbank in London for Old Park Lane Management.
McGee also hopes that the stain on its reputation created by its involvement in the demolition sector cartel is wearing off. The illegal activities exposed by the Competition & Markets Authority took place under the previous ownership. McGee cooperated with the investigation and was granted leniency by the CMA, which led to a reduced penalty of £3.8m earlier this year. The fine was fully provided for in previous accounting periods and has been paid in full – “meaning that this matter is now closed”, the company said.