Covid costs Esh Group £6m

Grant Prior 3 years ago

Esh Group has reported a £3.7m operating loss from continuing activities in 2020 as the pandemic cost the North of England contractor £6m.

The firm saw turnover for the full year increase to £223m following a major reorganisation and revised growth strategy.

But growth was offset by the pandemic which had a net effect on the Esh’s bottom line of over £6m – equivalent to a 2.6% loss of gross profit.

Chief executive, Andy Radcliffe, said: “We commenced the year with a record order book approaching £300m, a level of liquidity not seen in many years, and a business strategy that on all measures is performing well.

“The Group has recorded strong profitability through to the end of quarter three, and the board expect this to continue for the remainder of the year and beyond.”

The Covid-19 site shutdown period, cost of re-mobilising and overall reduction in productivity owing to periods of self-isolation saw gross profit margins fall to 2.4% from 4% the previous year.

Net cash generated through operating activities was £4.7m, due largely to a significant improvement in working capital management throughout the business and the privately-owned firm ended the year with £15.4m in liquid cash.

Radcliffe added: “The challenges faced from Covid-19 have inevitably impacted our results in 2020 and dampened our growth plans. However, to start this year with a record order book, being highly profitable in the year to date, and debt free, is a huge feat which has been achieved through a highly experienced leadership team and combined effort from all of our colleagues.

“We are re-positioned and re-focussed for success in a vibrant marketplace.

“As always, we are incredibly grateful to our clients, suppliers and wider stakeholders for their understanding and unwavering support. I am immensely proud of what we have all achieved over the past few years.”

Latest news

Receivers in at £125m Manchester tower developer

Domis Construction walked away from scheme following doubts over funding
2 hours ago

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
3 days ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
3 days ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
3 days ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
3 days ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
3 days ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
3 days ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
4 days ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
4 days ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
4 days ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
4 days ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
4 days ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
4 days ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
5 days ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
5 days ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
5 days ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
5 days ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
5 days ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
5 days ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
5 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
6 days ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
5 days ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
6 days ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
6 days ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
6 days ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
6 days ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
6 days ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
6 days ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
6 days ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
7 days ago

Contractor services