M&J Evans, a leading UK groundworks and civil engineering contractor, announces a strong financial and operational performance in its financial results for the year ended 31 December 2024.

 Key highlights

  • Turnover down slightly to £323.3m (FY23: 334.3m).
  • 30.8% increase in operating profit to £5.1m (FY23: £3.9m).
  • Profit before tax up 67% to £3.8m (FY23: £2.2m).
  • Group order book grew 13% to £504.0m (FY23: £446.3m), with tender success rates improving to 25.3% (FY23: 23.8%).
  • Delivery on regional expansion strategy, with new Eastern Counties region securing new major customers and contributing £17.8m of year end order book in its first year.
  • Robust balance sheet with cash of £25.2m (FY23: £18.2m); successful refinancing during the year has extended debt maturity by four years and added £9m of additional liquidity, supporting the Group’s strategy.
  • Well-positioned to deliver against five-year strategy, supported by stabilising macroeconomic backdrop and improving housebuilder sales.
  • As a result, the Group has a positive outlook for FY25 and beyond.

 

Financial overview

The Group’s financial performance has been strong against a challenging market backdrop. Turnover reduced slightly to £323.3 million (FY23: £334.3 million), reflecting sector-wide softness in volumes, whilst operating profit increased by 31% to £5.1 million, demonstrating the benefits of tight cost control and disciplined contract management.

EBITDA was £14.1 million (FY23: £15.8m), whilst profit before tax increased by 67% to £3.8m (FY23: £2.2m), supported by lower exceptional charges. Net assets increased to £52.3 million (FY23: £46.3m).

Cash at the year-end improved to £25.2m (FY23: £18.2m). The Group successfully completed a refinancing during the year, replacing existing loans that were due to expire in 2025 with a new four-year term loan. This exercise ensured the Group has a strong and stable balance sheet moving forward as well as adding £9m of additional liquidity which provides significant strategic optionality to support growth.

Solid execution on operational strategy

In a challenging, albeit recovering, UK housebuilding market the Group continued to deliver against its five-year strategy; a strategy that was reapproved by the board of directors in January 2024 outlining the Company’s safe, profitable and sustainable growth measures.

The Company launched its new Eastern Counties region during the year, delivering a particularly impressive inaugural performance. From a standing start, the region has quickly built a strong client base, supported by a growing, experienced team, securing £17.8 million in order book value at the year end.

Furthermore, the region is firmly on track to deliver over £20 million turnover in its first full year of operations, securing an order book of c.£30 million by July 2025, with further significant volumes in progress. Testament to ‘The M&J Way’ of safety-led, high quality delivery, the region has achieved excellent NHBC quality scores for work delivered thus far.

Across the wider group, the order book increased 13% year-on-year to £504.0 million (FY23: £446.3m), while tender decision success rates improved to 25.3% (FY23: 23.8%). This performance demonstrates the success of the Group’s regional strategy, which diversifies operations, broadens the client base, and positions the business to scale effectively as market conditions improve.

Outlook

Underpinned by a healthy order book and robust balance sheet, the Group entered the new financial year in a strong position. Stabilising interest rates and government commitments to deliver more housing nationwide – through planning reforms, support for the affordable housing sector, and reinstatement of housing targets for local authorities – is expected to support an uplift in demand during 2025.

At the same time, housebuilders are already reporting stronger sales rates, which is anticipated to translate into increased build activity.

Consequently, the outlook for the Group is positive with the expectation of reporting further positive progress in its financial and operational performance for the current financial year.

Chris Southgate, Group CEO, M&J Evans, said:

 “Despite ongoing challenges in the UK housing market, FY24 was a year of strong financial and operational progress for M&J Evans, backed by tight cost control. We delivered significant growth in profits, strengthened our balance sheet and continued to deliver against our strategy.

“The launch of our Eastern Counties region has been a particular success, contributing meaningfully to our order book in its first year and validating our focus on driving regional growth. Looking ahead, with a robust order book, strong balance sheet and increasing signs of recovery in the housing market, we remain confident in our future prospects.”