Merit, the UK’s leading industrialised construction and digital manufacturing specialist, has today announced a strong set of financial results for the year ending 30 June 2024, underpinned by continued innovation, project delivery excellence and a bold investment in people, leadership and sustainability.
Group Financial Results – Year ending 30 June 2024:
- Consolidated revenues: £79,758,079
- Gross profit: £16,116,790
- Pre-Tax Profit: £5,774,209
- Gross cash at year end: £2,772,672
- Employee increase from 305 to 357
The results for Merit Group reflect a planned change in the way the business accounts for the use of its intellectual property (IP) and platform. Previously, profits from subsidiaries were transferred via dividends to support central group services, including investment in innovation and the Group’s growing IP portfolio.
Given the volume of patents, technical know-how and proprietary systems now held at Group level, Merit has implemented a licensing model whereby each subsidiary—Merit Holdings and Merit Health—is charged a licence fee for use of this IP. This shift better reflects the true commercial value of the platform and is in line with Merit’s international growth plans, enabling future overseas entities to be structured under transfer pricing regulations and benefit from Patent Box tax relief where applicable.
Operating at the forefront of offsite construction, Merit designs and delivers technically complex, sustainable buildings at unprecedented speed - completing facilities in a third of the time required by traditional methods. This is achieved through Merit’s vertically integrated model and its use of high Pre-Manufactured Value (PMV) solutions, ranging from 75%–95%.
Environmental sustainability remains high on Merit’s agenda. The company continues to deliver Zero Scope 1 Carbon enabled, all-electric and energy-efficient facilities, helping clients significantly reduce operational emissions. By embedding sustainable design principles and advanced building performance modelling into every stage of delivery, Merit ensures its buildings are not only fit for purpose but also future-ready. The company’s commitment to minimising environmental impact is also reflected in its low-waste, high-precision manufacturing process and efficient logistics model - further lowering the carbon footprint of each project.
Beyond its commercial success, Merit’s performance reflects a deeper commitment to transforming the industry through talent, innovation and purpose.
Over the past year, the business has significantly expanded its workforce, with apprentices (21 additional in 2023/24) and graduates now making up 50% of its workforce, and a growing proportion of women across all roles - now at 20%. The development of future talent is a core part of Merit’s strategy, ensuring a pipeline of highly skilled individuals equipped to lead the next generation of construction innovation.
To support its ambitious growth, the business has also made several senior leadership appointments across business development, bids, marketing and operations functions - further strengthening its capability to scale sustainably and respond to sector challenges with agility and precision.
Tony Wells, CEO at Merit, said: “This year’s financial results reflect the enormous talent, drive and ingenuity within our team. We’re building more than just facilities - we’re building a new future for how complex infrastructure is delivered, faster, better and more sustainably.
“Our commitment to nurturing future leaders through apprenticeships and graduate opportunities, increasing female representation and investing in strong leadership means we’re not only growing in scale but in resilience and expertise too.
“Looking ahead, the strength of our project pipeline reaffirms our dedication to advancing offsite manufacturing and cutting-edge technologies, allowing us to expand our impact across multiple sectors. We are excited about the future and remain focused on delivering exceptional value to our customers.”
During the financial year, Merit continued to push boundaries in offsite construction, with significant project completions and new wins across healthcare and life sciences. Highlights include:
- The completion of Moderna’s Clinical Laboratories at Harwell Campus - supporting the UK’s strategic vaccine research capabilities.
- Delivery of the Solihull Elective Hub, a state-of-the-art theatre block enhancing elective procedures for the NHS.
- Continued progress on facilities in Norwich, Woking, Berwick, Seaton Delaval - each contributing to more efficient, accessible healthcare delivery across the country.
In parallel, Merit launched its UltraPOD® SFS Variant, a cost-effective, rapid-delivery solution for urgent healthcare needs, manufactured at its advanced facility in Cramlington using the latest roll former and panel line technology. The Group invested significantly in both Tangible and Intangible Fixed assets of over £13m (2023: £13m) during the past financial year.
Looking ahead, the business is preparing for a major expansion of Factory 2, with a planned 250,000 sqft extension to increase production capacity and support rising demand.
With a robust project pipeline, expanding team, industry-leading sustainability credentials and firm commitment to innovation and diversity, Merit is primed to play an even greater role in shaping the future of construction - delivering complex infrastructure with purpose, pace and precision.
