Esh Group restructuring after trading loss

Aaron Morby 4 years ago
Share

Durham-based Esh Group is set on simplifying its business after suffering a trading loss last year.

Andy Radcliffe, group CEO, is leading the transformation plan
Andy Radcliffe, group CEO, is leading the transformation plan

After several years of rapid growth in pursuit of a £300m turnover target, the business is now set on downsizing and focusing on core strengths.

The rationalising process and more selective bidding saw revenues slide from £243m down to £220m, with operating profit slipping £400,000 into the red.

Sales of development investments helped to lift the pre-tax profit line up to £400,000 compared with £3.8m back in 2016.

Last month as part of the ongoing streamlining programme Nixon Plant took over Esh’s Mechplant equipment in a hire back deal.

Chairman Micheal Hogan said: “We admit we are probably coming off a very tough couple of years, when the group probably grew too quickly.

“We didn’t have the appropriate level of control while trying to manage our business on multiple fronts.

“We also acknowledge that we didn’t have the right skills in place as well as having very outdated systems and technology.”

He added that Esh still has a strong balance sheet at nearly £42m, and was advancing an ambitious turnaround plan that saw the senior management team restructured late last year.

The group is also set to roll out a new management and technology computer system in the next few months, known as Project Gateway.

It hopes this will be transformational, helping to model jobs from inception to winning tender, construction and maintaining a profit margin and them closing out final account, with all associated financial transactions and management information.

Group CEO Andy Radcliffe said: “We continue to monitor our level of overheads, specifically in light of market uncertainty created by Brexit, and are ready to manage our cost base as market conditions demand.”

The Lumsden & Carroll civil engineering business will now begin bidding larger contracts, like the £30m Strategic Transport Corridor Phase (SSTC3) project to supplement housing infrastructure and local authority work.

Radcliffe said the firm’s Yorkshire region had experienced a challenging year, but he predicted growth in commercial building and affordable housing would see Esh report growth in revenue in the region during 2018.

He said that both the North east region and Scotland had reported reasonable years with steady growth expected.

During the year the private housing arm, Homes  by Esh, was launched as a self-sustaining division.

Where Esh Construction was formerly responsible for building houses, the business has reverted back to procuring its own construction from the market.

 

Latest news

Osborne makes £45m construction loss

Sale of infrastructure business balances books as contractor looks for zero-carbon wins
2 days ago

John F Hunt forecasts record revenue and profits this year

Demolition contractor back on strong financial footing after previously setting aside £5.6m for bid rigging probe
2 days ago

Notting Hill Genesis names £2.8bn framework winners

26 firms land places on main contractor deal: Full list
2 days ago

Green light for dual hotel scheme at Nine Elms

Two new hotel towers will share common basement
2 days ago

Trials start on cement-free pre-cast piles

Aarsleff is hopeful a product will come to the market shortly
2 days ago

Ex-Telford Homes boss to run green house builder

Jon Di-Stefano takes helm at M&G backed Greencore Construction
2 days ago

Subcontractors told to stop work on Brymor sites

£80m revenue southern contractor files letter of intent to enter administration
3 days ago

House builder Chartway sold to private equity firm

Cabot Square Capital signs another major construction deal
3 days ago

Murphy Group appoints new chairman

Capita chairman and investment banker John Cresswell to start in November
3 days ago

Tolent seals £40m Newcastle ‘future-living’ housing job

135-home Vaux scheme will be first of four neighbourhoods totalling 1,000 homes
3 days ago

Cruden takes first job at £1.3bn Edinburgh Waterfront scheme

Preferred bidder named for first 750 net zero homes at new Granton Waterfront coastal town
3 days ago

Trio of student towers to be built at Brent Cross Town

Ground works under way with main contractor due to be appointed next month
3 days ago

Keltbray gets start date for £50m motorway upgrade

Contractor hails "significant step forward" for highways business
4 days ago

Site workers settle for 5% pay increase

Contractors and unions agree one-year deal following months of talks
5 days ago

Rising wages and skills gap to overshadow materials issues

Materials and product Inflation tops 20% so far this year, but labour set to be next big headache
4 days ago

Erith pays £2.8m bonus to staff after ownership switch

Around 450 staff have on average received over £6,000 since move to employee ownership five years ago
4 days ago

Algeco lands £19.2m Leeds modular school scheme

Offsite specialist will supply and install 192 steel frame modules
4 days ago

Eight firms placed on £750m Midlands and Eastern framework

Next generation framework for jobs up to £7.5m employs a parallel plotting structure
4 days ago

Aston Villa unveil plans for £100m stadium expansion

Construction set to start next year on first phase of Villa Park upgrade
4 days ago

Skanska bans ‘swing-up’ lorry loaders after site death

Banned vehicles are used mainly to deliver bulky items like cabins and welfare units
5 days ago

HS2 agrees £78m variation on Euston tunnels cost

Skanska Costain Strabag seals extra payment for agreed changes to the scope of work
5 days ago

B&K breaks ground at £150m Newcastle HMRC job

Work gets underway on city's largest ever office project
5 days ago

New building safety laws come into force today

Leaseholders protected and new regulator for construction product manufacturers in wake of Grenfell
5 days ago

Peel submits plan for £150m cannabis production plant

Isle of Man seeks to become a leader in the emerging medicinal cannabis sector.
5 days ago

Tarmac buys first electric concrete mixer truck

Country's first battery powered mixer truck will start site deliveries this Autumn
5 days ago

Tilbury Douglas wins Dorset hospital upgrade

Construction could start in 2024 after Dorset County Hospital secures £77.3m of funding
6 days ago

McGee in £2.4m provision for bid-rigging probe

Demolition contractor says provision will cover the expected fine over cover pricing ring
6 days ago

First designs for £275m HS2 Midlands nerve centre

Contractor due to be named in Autumn next year for Washwood Heath hub
6 days ago

London Bankside Yards next project switches from resi to offices

Revised plan submitted for 18-storey office next to Blackfriars Bridge
6 days ago

Plans in for Cambridge North major mixed-use scheme

Over 400 homes and nearly 600,000 sq ft of office and shops planned for railway sidings site
6 days ago

Contractor services