GMI full year gross margin increases to 3.2%

The construction group has released its figures for the year ending 30 September, with a strong performance underlined by projects across Yorkshire and the North East.

The Leeds-based firm credits its strategy of ‘controlled consolidation’ for the strong profit growth, which rose from 2.6% in 2023.

The increased figure of 3.2% included the settlement of a historic project, without which  gross profit margin would have been £15.2m (6.3%).

GMI projects throughout the year included the expansion of Leeds City College’s new Mabgate campus, which will create 70,000 sq ft of additional educational space, and an extension and upgrade to the Centre of Excellence in Sustainable Advanced Manufacturing on behalf of Sunderland City Council, for Japanese manufacturer JATCO.

The firm has secured turnover with a value of £217m for 2025.

Its strategy to reduce turnover has resulted in increasing profit before tax to £1.04m (2023 £0.92m) and a significant improvement in cash at bank of £19.3m (2023 £10.2m).

Looking ahead, the company is continuing to invest in new and emerging technology, such as in-house Building Information Modelling  services, modelling software, and utilising AI technology to access key elements of legislation within the Building Safety Act, as part of an Innovate UK project.

Gareth Jones, group managing director of GMI Construction, said: “The business is targeting stable and controlled growth for future financial years, applying the rigour and stress tests to carefully consider risks on projects.

“Significant improvements in systems and information now allow data-driven assessments. These are used in conjunction with prudent business practices and a risk-averse strategy to enable sound commercial decision making.

“The four regions that GMI operates in are all now established and thriving. These are Yorkshire, North East England, North West England and the Midlands.

“The increasing complexities posed by new legislation, including the Building Safety Act and the requirement for a Golden Thread on every project have focused GMI to develop new and innovative solutions, including a project collaborating with Leeds Beckett University and innovative tech firms to utilise AI.

“This project has been awarded £1.2m of funding from Innovate UK shared between GMI and the project collaborators and is due to complete in the next financial year.”