Esh Group returns to profit after reducing risks

Grant Prior 1 year ago
Share

North of England contractor Esh Group has reported a return to profitability for 2021 with a major turnaround from the previous year’s covid-hit results.

Esh has undergone a comprehensive programme of simplifying and refocusing the business over the past four years which has seen pre-tax profits hit £3m in 2021 from a £5.1m loss last time as turnover hit £255m.

Staff numbers fell to 756 from 837 but Esh is now actively recruiting to support its growing order book.

Group chief executive, Andy Radcliffe, said: “We are delighted to report a remarkable improvement in profitability, particularly during another year which was marred by the impact of the global pandemic.

“This achievement is no mean feat and is underpinned by the cumulative efforts over the last four years to reposition the group to target resilient sectors of the construction industry which demonstrate long-term stable fundamentals.

“Despite continued pressures emanating from supply chain constraints and elevated levels of cost inflation, our efforts to deliberately design a business model that allows the smoothing of positive and negative factors across our operations has paid dividends, allowing us to insulate a large part of the business from levels of inflation not seen in our generation.”

The privately-owned firm ended 2021 with £21m in cash and remains debt free, without drawing on its £7m credit facility at any point in the year. Gross profit margins climbed to 6.7% from a comparable 4.9% the previous year – the highest it has been in six years.

Radcliffe added: “While we continue to face headwinds, along with the wider industry, our focus on increasing turnover via routes to market which present reduced risk provides us with a stable footing on which to continue our growth plans.”

Esh Group has focused on developing a balanced portfolio across its civil engineering, affordable housing, commercial build, and private housebuilding divisions.

Radcliffe said: “I am incredibly proud of the team at Esh. Their resilience, commitment and ingenuity in dealing with the many challenges we have faced as we worked to fundamentally reposition the group is nothing short of amazing.

“Our gratitude, as always, goes out to our clients, our supply chain and wider stakeholders – we are who we are due to the determination of a large group of people who believe that we only succeed, if we all succeed.”

Latest news

Site labour rates start rising again

Industry's biggest payroll firm says "it feels like things could be turning round"
4 hours ago

Council finds extra £33m for Buckinghamshire link road

South East Aylesbury Link Road costs soar by nearly 30% to £147m
4 hours ago

Quartet win £490m North West & Central railway works deal

Skanska, Kier, Octavius Infrastructure and Story Contracting bag major projects deal
4 hours ago

Unite Students plans first major mixed-use scheme

Developer's first mixed BTR and PBSA project to be built in Edinburgh
20 hours ago

Galliford Try names new finance director

Rentokil's Kris Hampson joins contractor to replace Andrew Duxbury
5 hours ago

Council boss hits out at bat threat to £274m road job

Natural England could scupper scheme due to be built by Ferrovial
5 hours ago

Hydrogen-fuelled diggers to be allowed onto highways

Government to raise barrier to widespread use of hydrogen fuelled plant in construction
21 hours ago

Plans in for £118m Government hub in Darlington

Work pencilled to start later this year on new home for 1,450 civil servants
20 hours ago

New contractor highlights Henry Construction jobs on website

New firm lists jobs by failed contractor to show its experience
1 day ago

Contractors line up for £2.6bn Anglian Water AMP8 deal

Eight big names land places on pioneering @one Alliance
2 days ago

McAleer & Rushe bags first major later living project

Work to start this month on 167-flat Royal Tunbridge Wells project
1 day ago

Kier starts first all-electric prison houseblock job in Kent

Next-generation fully electric T60 prison houseblock to be built at HMP Elmley
1 day ago

Keepmoat sees better times ahead in housing market

Profits dip in 2023 despite construction of record number of new homes
1 day ago

Vistry signs partnership deals for 1,900 mixed tenure homes

West Sussex former airfield and Newmarket sites to break ground
2 days ago

Turnover at Wates tops £2bn for first time

Construction division exceeds £1bn turnover as average contract value hits record high of £48.3m
2 days ago

L&G looks to sell Cala Homes in exit from house building

Insurance giant reported to be preparing to offload 3,000 homes-a-year developer
3 days ago

Multiplex profit almost trebles as margin hits 5.5%

Revenue jumps 20% to £675m as big London scheme complete
2 days ago

TopHat puts plans to open huge Corby factory on hold

Advanced manufacturing facility was due to employ 1,000 people
2 days ago

Laing O’Rourke lands Calderdale hospital job

Enabling works to start by the end of this year at West Yorkshire site
2 days ago

Go-ahead for £475m Sunderland film and TV studios

Work to start this year on first phase Corwn Work studios
2 days ago

Willmott Dixon set for £20m Stockport Community Hub

Planning decision expected in June on Marple leisure and health clinic project
2 days ago

Police hunt for blundering dumper truck thief

Raider drove into a fence before getting stuck on a bank
2 days ago

Beattie Passive files administration notice

Passivhaus pioneer has been in business for more than ten years
3 days ago

McAlpine set for £50m space and tech centre

Northumbria Uni sign pre-con deal for new satellite research hub
3 days ago

VolkerFitzpatrick seals £34m Kent road viaduct

Work to start next year on Sturry Link Road near Canterbury
3 days ago

Eight win £600m Scottish civil engineering framework

Balfour, Farrans, Graham and Morgan Sindall win major works lot
3 days ago

Site engineer crushed to death by excavator

22-year-old victim died just months after graduating from university
5 days ago

NG Bailey fined £135,000 after hospital site death

Worker died after striking overhead beam while navigating a mobile elevating work platform
6 days ago

Kier lands £30m Mansfield Connect project

Construction to start in January 2025 on town centre regeneration scheme
3 days ago

Award-winning steelwork firm files administration notice

Kelpies steelwork specialist SH Structures files court notice
6 days ago

Contractor services