London-based Phoenix ME has “minimised the challenges” faced by ISG’s demise with a surge in sales and pre-tax profit, according to its latest annual accounts.
The mechanical and electrical (M&E) specialist said it overcame the collapse of ISG – one of its biggest tier one clients – by “early re-engagement” with clients.
Phoenix ME – the main trading arm of Cityside Electrical – posted turnover of £295.3m for the 12 months to 30 September 2024.
This marked a 74 per cent increase from the previous year’s figure of £170.2m.
The accounts also showed that Phoenix ME’s pre-tax profit rose to £10.7m, up from £7.4m the previous year.
This resulted in a narrower margin of 3.6 per cent compared with 4.3 per cent the year before.
“Throughout the 2024 financial year, the business and the industry faced challenges due to the administration of several companies, notably the high-profile downfall of ISG, a significant client at the time,” its directors’ statement said.
“However, the courage and togetherness that define our core values facilitated early re-engagement with end clients on active projects. As a result, the impact of ISG’s administration was minimised.
“All live projects during administration have since been re-engaged under new contracts.”
The firm, which has operated in London for 94 years, provides M&E services in the data centre, life sciences, commercial, leisure, hotel and rail sectors.
It said that expansion in 2023, when it opened a regional office in Cambridge, had allowed it to “diversify into a new [geographical] market”.
Phoenix ME’s cash reserves improved from £13m to £22.4m, and the firm held no short-term or long-term repayable bank loans or overdrafts.
No dividends were paid out.
The firm increased its monthly average staff count from 373 to 420, which saw its annual wage bill rise from £30.1m to £44.3m.
The company said it entered the current financial year with its “largest secured order book” of £520m.
“This substantial order book is expected to drive revenue towards an impressive £350m turnover for 2025,” it said.
Parent firm Cityside Electrical was ranked as the 9th biggest M&E contractor in the CN100 Specialists Index last year with a turnover of £161.8m.
Cityside’s most recent published accounts showed a 5 per cent increase in revenue to £170.4m in the year to 30 September 2023. Its pre-tax profit was £6m compared with £7.6m the year before.