MTX contracts reports resilient results amid modular healthcare demand


MTX Contracts has posted steady financial performance for the year ending 31 August 2025, with pre-tax profit rising slightly to £6.9 million despite a 12 per cent drop in revenue to £113.5 million.


The Cheshire-based modular healthcare specialist improved its margin to 6 per cent from 5.2 per cent the previous year and distributed a £4.4 million dividend, up from £3.75 million. Directors cited growth in preconstruction services and facilities management contracts, with expectations of turnover exceeding £140 million in the current financial year.


The results come aſter a period of strategic adjustment following strong prior-year growth, when revenue had reached £129.4 million and pre-tax profit stood at £6.8 million. MTX continues to focus on the design, build, and maintenance of modular healthcare facilities, leveraging offsite methods for rapid, high-quality delivery in hospitals, diagnostics, and clinical spaces. Operating profit rose to £6.1 million with a healthy cash balance of £17.6 million.


Recent successes include appointment to the NHS Shared Business Services Modular Buildings 3 framework, valued at up to £3.6 billion until June 2029. This provides a compliant route for NHS trusts and other public bodies to procure modular solutions efficiently.


The performance demonstrates resilience in a challenging market and underlines the strength of specialist MMC providers with established public-sector pipelines. Healthcare remains a stable growth area for modular construction, with frameworks enabling streamlined procurement and faster project rollout amid ongoing capacity pressures.


Industry observers note that the ability to maintain margins while revenue adjusts reflects effective cost control and a diversified order book that includes both new-build and facilities management work.


This solid platform positions MTX to capitalise on increasing demand for efficient modular healthcare infrastructure across the UK, particularly as public-sector frameworks continue to prioritise offsite delivery for speed, quality, and sustainability.


The results reinforce the value of specialist modular expertise in delivering essential health infrastructure at pace, even as the wider sector navigates economic headwinds.


Duke Street completes acquisition of McAvoy in modular sector consolidation


Private equity firm Duke Street has acquired McAvoy, a leading UK and Ireland provider of premium modular buildings, from Blantyre Capital, with the deal completing in October 2025.


Established in 1972, McAvoy manufactures and rents both temporary and permanent modular solutions for social infrastructure, healthcare, and commercial uses. The transaction builds on Duke Street’s existing investments in essential services and includes a £7.5 million super senior facility from OakNorth, agreed in November 2025, to support working capital and rental fleet expansion.


McAvoy’s turnkey modular offerings can be delivered up to 50 per cent faster than traditional methods while complying fully with building regulations. Its modern, custom-built modules are typically more than 70 per cent complete before leaving the company’s 70,000 square- foot purpose-built manufacturing facility in Lisburn, Northern Ireland, which has capacity for up to 1,200 modules annually.


Partners at Duke Street highlighted the company’s diverse product range, strong order book, intellectual property, and proven manufacturing capability as key attractions. Joe Thompson, Partner at Duke Street, said the business has “a strong reputation for building premium modular solutions”.


The acquisition is expected to enhance McAvoy’s ability to serve public and private clients with flexible, high-quality modular space without requiring large upfront capital from end users. It signals renewed investor interest in established modular providers with proven manufacturing and rental models at a time when public frameworks and policy are creating more predictable demand pipelines.


This is Duke Street’s second investment in social infrastructure, following its 2024 acquisition of medical imaging specialist AGITO Medical, underscoring the firm’s focus on essential services that support economic and community needs.


Analysts see the move as positive for sector confidence, particularly for providers capable of delivering both permanent and temporary solutions across housing, health, and justice sectors. The deal positions McAvoy for further expansion in delivering scalable, sustainable modular infrastructure while benefiting from additional capital to grow its rental fleet.


This consolidation reflects a maturing market where strategic private equity investment can support long-term growth in offsite construction and help the industry meet rising demand for rapid, high-quality space solutions.


Prefabricated construction market forecast to reach £28.84 Billion by 2029


The UK prefabricated and modular construction market is on track for steady expansion, projected to grow at a CAGR of around 5 per cent and reach approximately £28.84 billion by 2029.


The market is expected to hit £22.50 billion in 2025, building on a 6.8 per cent CAGR achieved from 2020–2024. Timber-led volumetric systems, NHS framework adoption, and policy-driven standardisation are among the main factors supporting this trajectory.


Government initiatives in affordable housing and healthcare infrastructure are channelling demand towards offsite solutions to address skills shortages, control costs, and improve sustainability. NHS modular frameworks exemplify this shiſt, enabling quicker deployment of facilities with factory-controlled quality and reduced onsite disruption.


Past sector volatility has underscored the need for better risk-sharing, clearer commissioning processes, and coordinated strategies between clients, manufacturers, and supply chains. Analysts emphasise the importance of embedding prefabricated methods more deeply into long-term public procurement plans to achieve economies of scale and consistent demand.


Hybrid and volumetric approaches are gaining ground for their ability to deliver energy-efficient buildings that meet net-zero ambitions while compressing programme times. While the market remains somewhat fragmented, opportunities exist for both specialist firms and larger contractors to capture growth in residential and healthcare sectors.


Sustained policy support, including MMC targets in public funding programmes and new standards such as PAS 8700:2025, is anticipated to stabilise demand and drive further innovation in prefabricated techniques.


Spring 2026 M39 5


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