Welcome to our latest edition of Moorgate Management’s ConTech Matters, where we look at the current news, trends and related stories from around the construction technology industry to help bring you and your business the information you need to devise and develop strategy, including Go to Market within the built environment.
Monthly Market Review
An interesting macro backdrop published by Office for National Statistics for Apr-25 shows construction output is estimated to have grown by 0.9% in the month – the third consecutive period of growth, following the 0.5% increase in Mar-25. Click here to learn more.
This, however, is tempered by the RICS UK Construction Monitor for Q1-25, which reported neutral (-1%) workloads representing a softening over the last 12 months, with growth driven mainly by government spending on infrastructure and energy projects. Headwinds posed by both credit conditions, insolvencies, regulation and planning continue to exist but of concern is the (-12%) fall in profit margin expectations, worsening for the third consecutive quarter. To read more click here.
The S&P Global flash PMI numbers support this view, with a decline in Apr-25 driven by lack of business confidence. This partially recovered in May-25, although the index remained below the 50.0 neutral level for a second successive month, albeit with less of a decline than in Apr-25. Click here to read more.
Sector wise, NHBC reported that new homes saw a rise in registrations in Q1-25, with more than 29,000 new homes registered to be built compared to only 21,000 in Q1-24. This positive uptick was attributed to both more confidence and the increase in properties outside of London, which are less affected by the Building Safety Regulator’s gateway approvals process (for high rise). To read more click here.
In contrast, the NFRC Spring ’25 State of the Roofing Industry report highlighted that activity in the UK roofing sector was slowing, with both workloads and enquiry levels down (-9%) on LfL quarters last year. Click here to read the full report.
Looking ahead, the Glenigan | Powered by Hubexo 2025 Summer Forecast predicts a positive outlook over the next three years, with 3% growth expected in 2025. An emphasis on the private housebuilding sector and infrastructure spending underpins these views. To learn more click here.
Customer trading updates across each sub sector show a broadly resilient sets of results:
Tier 1 Contractor Tilbury Douglas reported both an improved operating margin and a doubling in pre-tax profits in its second year of independent ownership, with growth across each of its four sectors – building, fit out, engineering and infrastructure. Click here to read more.
Design and build contractors McAleer & Rushe reported similarly upbeat results, with turnover up over 12% and pre-tax profit up 45% from the prior year, driven by strong performance in each of its residential, student accommodation and leisure sectors. Importantly, it also reported a projected turnover near £500m based upon contracts secured in 2024 and subsequently reflecting positive sentiment. For more detail click here.
Similarly, Murphy Group delivered a 25% increase in pre-tax profits to £84m, attributed to both sharpened contract selection and by delivering operational efficiencies. Click here to see detail of the results.
Looking at Housebuilders, there was a very mixed picture:
Taylor Wimpey plc reported an 11% increase in completions in its half-year results, but an (-11%) fall in group operating profits to £161m after a £20m charge for contractor remediation and an increase in its cladding safety provision of over £220m due to cavity barrier remediation work. Click here to read more. Similarly, Crest Nicholson plc set aside £132m last year for remediation but this year has returned to profit with its results for the latest months showing £9m in pre-tax profits (£31m last year) and revenues broadly flat at £249m. To see the full results click here.
Cala Group Limited, the PE-backed Edinburgh-based housebuilder, saw pre-tax profits fall (by 30%) and turnover fall (by 4%) in the year to 31 December as a result of fewer completions, a lower average asking price and a number of sites being delayed due to planning. To learn more click here.
Within the Facilities Services space, NG Bailey reported its highest ever turnover at £662m, with underlying operating profits up 33% and an order book of £1.6bn, up 14% on the prior year with its newly formed Built Environment division (combining engineering and facilities services) driving this success. To learn more click here. To provide context to the results, SFG20 has produced an interesting state-of-the-market report, showing key drivers and some fascinating underlying trends. To access the report click here.
Within the Housing Association space there were really positive moves to stimulate demand, with Peabody securing a £60m loan agreement with Lloyds Banking Group to retrofit thousands of its homes across London and the South East – the loan being partly guaranteed by the National Wealth Fund as part of the £1.3bn social housing guarantee retrofit scheme. Click here to read more.
In a similarly positive move following the completion of its recent merger, Bromford Flagship secured a £75m investment to progress its strategic aims of building a further 2,000 homes in each of the next 30 years to compliment its existing 80,000 home portfolio. To learn more click here.
M&A activity continued in both the contracting and consultancy sectors:
PE-backed environmental services group Adler & Allan acquired South West Civils contractor Glanville Environmental – its ninth acquisition in just four years enhancing the utilities and infrastructure capability. To learn more click here. Infrastructure specialist M Group continued expanding its critical communication offering to customers through its recent acquisition of Telent Technology Services Ltd. For more details click here.
Utilities contractor Avove Utilities has acquired wastewater solutions specialist Jacopa Limited (Ireland) to expand its utility operations in Northern Ireland. Click here to read more.
Professional services business WSP has acquired global consulting firm Ricardo plc, strengthening its global presence and operating in more than 20 countries with a sustainable and rail infrastructure focus. Click here to learn more.
In an interesting move, Mace has separated its contracting and consulting businesses with Goldman Sachs Alternatives taking a majority investment in Mace Consult with the aim of supporting future growth through strategic acquisitions. To read more click here.
The trend in construction insolvencies continued, with the latest BCIS reports highlighting 385 construction insolvencies – an 18.5% increase on previous months. Worringly, of these 190 of them were within the specialised construction activities category. Click here to read the full report.
Several contractors have resized their operations, with Lorne Stewart Group closing its offsite construction subsidiary after a period of prolonged losses and difficult market conditions. To learn more click here. M&E contractor Dalkia is also looking at redundancies based on contracts ending with no new immediate starts. Click here to learn more.
Industry Trends
The forecast growth in the Modular Construction Market is captured in this report from Future Market Insights, Inc. and predicts growth to US$ 219bn by 2029 driven by both product innovation and 3D printing and digital twin advancement. To read more click here.
Building on the existing penetration of MMC within Housing, with 1% of all new UK homes currently Passivhaus design, the Passivhaus Trust is forecasting this to rise to 10% by 2035 with the aim of educating at least 50% of the industry in the concept – creating a clear opportunity for MMC founders. Click here to learn more.
Underpinning this forecast growth is the need to remove barriers to MMC, with one of the primary obstacles being the importance of understanding the Design for Manufacture & Assembly (DfMA) principle. To understand more click here.
3D printing applications use cases continue to increase, with National Grid trialling 3D printed concrete (3DCP) foundations for use in a new substation, along with Hyperion Robotics and The University of Sheffield. Click here to read more.
Similar innovation has been seen in the use of 3DCP for curved walls, with a recent study into how 3D printed elements behave under horizontal load, highlights the key attributes that need to be considered when curved walls are required. To read the full report click here.
Significant innovation is being seen in site-based robotics, with a study being undertaken using drones for mid air material deposition (also known as Aerial additive Manufacturing or Aerial AM). Initial results indicate improved productivity, sustainability and site safety when compared to existing traditional ground based construction methods. Click here to learn more.
The growing use of Digital Material Passports (DMP) is seen as a crucial part of accelerating the circularity of building materials, a recent research report has highlighted. Interestingly, the role that DMP’s play in facilitating material use can be seen in innovative Contech platforms such as Material Index. To read the full report click here.
The practicalities of the transition towards Digital Product Passports (DPP) and the likely interim steps is well set out in this article from EURO-MAT, which includes the interim step from GS1 from barcode to QR code with its “Project Sunrise”. Click here to read the full interview.
Sticking within the circularity space, Artificial Intelligence (AI) is being used to create a survey platform to increase the efficacy of of pre-demolition and pre-refurbishment audits with an Innovate UK funded project entitled BuildAudit. At its heart is applying AI to datasets (such as architects’ plans) and applying other Contech solutions such as image recognition to help recreate the data needed for new buildings from BIM and Digital Twins. To understand more click here.
The benefits from the use of AI within Financial Management is highlighted in this article by Coreloops, both streamlining workflows and accelerating collaboration Click here to read more
In an interesting application of BIM, ObraLink has developed a solution using 100% automated BIM software, together with AI to automatically share with concrete suppliers to the project in specialised data modules, the optimum product quality of concrete required by the architect. To understand more click here.
Funding trends
Fundraising is hard enough – self-inflicted barriers are helpful if they can be avoided. In this really helpful ‘Nineteen easy steps to scare off potential investors’ guide, the most obvious mistakes to avoid and why, are clearly and concisely laid out to help you avoid them. Click here to read more.
Understanding the current investment appetite from VC’s is an important factor when you prepare to raise. In this interesting research report from Nymbl Ventures, start up funding for Contech surged 46% year on year in Q1-25, and was the only built environment category to show year-on-year growth. To understand the report more fully click here.
In an interesting new development, AceON Accelerator backed by ZAKA VC provides founders with the opportunity to be both part of their Autumn Accelerator program as well and have an opportunity of funding. Click here to learn more.
Having discussed the importance of grants when boot strapping investment pre-seed, platforms such as Grantify UK can be a really useful tool to act as an aggregator for potential grant availability. To learn more click here. In a variation on this theme, the entrance of Gilion into the UK market offers founders a non-dilutive growth loan, focused on businesses who are SaaS or marketplace with ARR of Eur1M upwards. Click here to understand more.
Some interesting investments have been made within the space.
Ontik completed a Eur3.2m seed round lead by firstminute capital to continue to scale their B2B payment solution for wholesalers. To understand more click here. Similar seed funding success was achieved by Tradeaze with its latest £1.1m round led by Clearance Venture Partners, taking their total investment to date to over £3m. To learn more click here Alrik, the automated delivery platform provider for suppliers and merchants closed a further round, led by People Ventures taking its total investment to Eur7m to support its expansion into the UK and across Europe. Click here to read more. German-based plancraft focused on Construction AI automation, followed on its series A funding in Jun-24 with a Series B round of Eur38m to continue its growth. Click here to learn more.
M&A wise, Balderton Capital portfolio business Forecast, focused on AI-powered resource and project management was acquired by its peer Accelo. To learn more click here
Founder trends
In an interesting report by Carta, which has analysed over 45,000+ start ups since 2015, it looks at the founder ownership dynamics, whether sole founder or co-founding teams, and highlights some fascinating trends – not least that solo founders are less likely to raise VC funding. Click here to read the full report.
Understanding your peers’ journeys can often provide as much insight as advice from your advisors and investors. One such journey is that of the co-founder of AI feasibility platform TestFit on the boundary of Contech and Proptech, who speaks candidly about both his journey and the need for unshakeable belief. To hear the full interview click here.
When choosing and applying for an Accelerator program, there are many factors to consider, not least regarding the opportunity to leverage fellow portfolio companies. An innovative example of this is the approach taken by Digital Catapult as part of the Innovate UK BridgeAI programme, focused on the application of AI in the sector – companies taking part in the Accelerator programme include AIConstruct Ltd and Gpeto AI. Click here to read more.
Helping your customers, in this case construction companies, to understand the opportunities presented by construction technology is key to both adoption and the digital transformation of the Built Environment. In this article by Cemex Ventures, a compelling case is provided which for all Contech founders is an important read. To read the full case click here.
Industry Associations
Building on country-specific founder organisations, the International ConTech Network aims to be the first global, cross sector, not-for-profit alliance to help accelerate innovation in construction technology. Its aims are simply to unite, connect, amplify and accelerate founders and their ideas. To understand more click here.
Following the recent 2025 Digital Construction Week event, the team at Propel reflected and highlighted three key takeaways which will likely resonate with all founders who attended – the interesting one being how the Hiring Gap is still the biggest challenge. Click here to read further insight.
ConTech Insight
In an insightful piece by Construction Dive looking at the growth in Tier 1 construction companies setting up their own funds, it highlights the shift that is taking place in terms of their investment criteria, and what the likely impact may be for Contech founders seeking investment. Click here to read more.
Building on the theme of cultivating internal buy-in within potential construction customers, this interesting article from Suffolk Technologies looks “inside out” at the challenges and potential solutions to help founders navigate each opportunity. To read more click here.
As your business grows, the importance of having the right Board composition to help, support and constructively challenge you and your team becomes increasingly important. In this really insightful interview with Mauricio Tessi Weiss of Zacua Ventures as part of the BETA Network series, founders gain invaluable insight into both the evolution of the Board, its focus and the role of VC investors within it. Click here to here the full interview.
In an article we have covered before but feel important to re-cover, Octopus Ventures outline exactly why Mentorship Matters and the benefits not only for mentors but also for mentees. To see the full text click here.
When co-founder conflict arises, it can, if left unchecked, become terminal to your start up. Communication between co-founders is clearly key, but being able to see the signs and know what to do about them is paramount. In this article by TechCrunch co-founder Garry Tan conflict is explored at length and pragmatic solutions are highlighted. To explore in more detail click here.
When developing your product roadmap, it is all too easy to lose sight of the difference between customer-led and customisation. This really helpful article from Pocketworks outlines exactly what these challenges are and more importantly how to overcome them. Click here to read the article.
ConTech Case Study
Preparing virtual data rooms and keeping them updated may sound obvious, but when you are focused on a reducing cash runway and pitching to investors, can easily be forgotten. We have shared our experiences helping clients to avoid this and ensure that it does not become a blocker to the investment round. Click here to read more.
If you’d like to learn more about any of the topics covered and how we can help you and your business to devise and develop strategy including Go to Market within the built environment, get in touch with Moorgate Management Limited today, or call 07767 291 379.
Thank you for reading.