How blended margin moved from 20.8% to 21.4%
The period-on-period bridge for Meridian's eight contracts: six reported drivers behind the 0.6-point movement in April 2026, the contracts involved, and illustrative recovery levers against the 22.0% target.
- Client
- Meridian M&E Ltd
- Portfolio
- £14.2m · 8 contracts
- Reference
- MER-BRG-P7
- Period
- April 2026 · Month 7
- Prepared by
- BuiltAI Intelligence Ltd
- Movement
- +0.6pp this period
Illustrative example: fictional project and parties.
What moved margin this month
The reported April margin gain is +£64k, moving the rate from 20.8% to 21.4%, within 0.6 points of the 22.0% target. The stated first positive month in three periods is reported history, not established by this two-period table. Whitmore's agreed change does not isolate its net margin contribution or a without-approval outcome.
Six drivers account for the change: three positive worth +£104k, led by variation recovery and subcontract outturn, and three negative worth −£40k, from prelim overrun, labour reallocation and disputed FM deductions. Each is set out in the waterfall and driver detail below.
Opening margin of £1,204k (20.8%) plus the net movement of +£64k gives a closing margin of £1,268k (21.4%), the sum of +£104k of gains and −£40k of offsets. These are period margin figures, not the £14.2m portfolio value.
The margin waterfall, March to April
Each driver's contribution to the £64k net movement, with the running margin balance carried from the March close to the April close. Positive drivers are grouped first, then the offsets.
| Bridge step | What drove it | Movement | Running margin |
|---|---|---|---|
| Opening margin | March close · 20.8% | - | £1,204k |
| Variation recovery | Whitmore asbestos, Docklands and Kingsferry dayworks | +£68k | £1,272k |
| Subcontract outturn | Docklands steelwork re-tender, Whitmore tiling | +£24k | £1,296k |
| Other net adjustments | Materials credit, cost reclassification, Cathedral accrual | +£12k | £1,308k |
| Prelim overrun | Cathedral Quarter, two-week programme slip | −£18k | £1,290k |
| Labour reallocation | One-off cross-contract charges | −£14k | £1,276k |
| FM deductions | Riverside FM, two disputed SLA charges | −£8k | £1,268k |
| Closing margin | April close · 21.4% | +£64k | £1,268k |
Gains, offsets and the net position
The +£64k net movement is three gains worth +£104k set against three offsets worth −£40k. The +£68k variation driver combines several contracts. Whitmore's £62.4k agreed change value does not establish its isolated margin contribution or whether the gains and offsets will recur.
Gains
+£104kVariation recovery +£68k · Subcontract outturn +£24k · Other net adjustments +£12k
Offsets
−£40kPrelim overrun −£18k · Labour reallocation −£14k · FM deductions −£8k
Net movement
+£64kUp 0.6 points to 21.4%, within 0.6 points of the 22.0% target. Earlier-period history remains unverified here.
Where each contract sits against target
The reported blended 21.4% covers eight contracts; four are below target, led by Kingsferry Crossing. The contract weights are not supplied here.
| Contract | Ref | Margin | vs 22.0% target | Status |
|---|---|---|---|---|
| Crestfield Phase 2 | CRES-2 | 23.2% | +1.2pp | Above target |
| Whitmore Tower | WHIT-T | 22.8% | +0.8pp | Above target |
| Docklands Phase 2 | DOCK-2 | 22.4% | +0.4pp | On target |
| Northgate Cat-B | NRTH-G | 22.1% | +0.1pp | On target |
| Bluewater Tower | BLUE-T | 21.6% | −0.4pp | Below target |
| Riverside FM | RIVR-FM | 19.8% | −2.2pp | Below target |
| Cathedral Quarter | CATH-Q | 19.4% | −2.6pp | Below target |
| Kingsferry Crossing | MERS-G | 18.1% | −3.9pp | Below target |
| Portfolio blended | 8 contracts | 21.4% | −0.6pp | Value-weighted |
Kingsferry (MERS-G) sits 3.9 points below target at 18.1% and carries the largest named WIP balance at £480k. Its re-measure is a commercial priority; the net effect on May margin requires assessment.
Implications and next steps
The reported 21.8% outlook, within 0.2 points of target, is conditional on agreement, costs and recoverability of the £482k pipeline and disputed deductions. The £601k blockers already comprise £387k aged WIP plus £214k CNI; these balances are non-additive. Clearing blockers supports billing, subject to payment, not proven cash collection.
The below-21% May scenario is not a measured prediction. Cathedral Quarter prelim exposure and ageing WIP need review. Aged WIP is £387k against £1.84m total (target £1.5m); future margin depends on the reconciled costs and recoveries.
Recorded actions and dates
- 9 May
- Commercial Director to approve the Kingsferry Crossing re-measure for resubmission to the client.
- 15 May
- Recorded target for a client decision on the submitted re-measure; entitlement and the applicable deadline need review.
- 23 May
- Produce a standardised Riverside FM application template to close the evidence-gap deductions.
- 30 May
- Next monthly margin review; review whether recovery has held and margin has moved toward target.
Illustrative recovery levers
| Lever | Value | Illustrative margin effect |
|---|---|---|
| Approve and recover the Kingsferry re-measure | £31k | +0.1pp |
| Convert the submitted variation pipeline | £236k | +0.2pp |
| Recover the Cathedral prelim exposure | £8k | +0.1pp |
| Reverse the disputed Riverside deductions | £8k | +0.0pp |
| Path from 21.4% toward 21.8% | £283k | +0.4pp |
Review the proposed recovery actions, evidence, owners and dates. The £31k re-measure is part of Kingsferry's £146k submitted position, within the £236k submitted pipeline. The displayed £283k is gross arithmetic across overlapping levers, not a distinct recoverable balance or net benefit. The +0.4pp path needs a reconciled cost and margin assessment.
Whitmore's £62.4k is agreed change value, not an isolated net margin gain. The six-driver bridge records this month's movement; future margin and recurrence remain subject to costs, agreement and recoverability.