The Hitchin-based contractor said workload and pipeline are now at record levels after investing heavily in compliance systems and pre-construction expertise ahead of the tougher higher-risk building regime.

HG held turnover flat at £387m in the year to December 2025 as developers across the sector battled Building Safety Regulator delays that slowed project starts.

But the firm still lifted pre-tax profit 56% to £14.9m from £9.5m as margins improved sharply from 2.4% to 3.7% helped by a strong in-house delivery capability.

Chairman Christopher Benham said HG’s early investment in Building Safety Act capability had now positioned the business strongly for growth.

HG now employs 326 staff, up from 292 last year, after strengthening internal quality assurance, planning, design and health and safety teams.

He said: “With a commendable portfolio of Gateway 2 submissions and approvals, the financial outlook for 2026 and beyond is robust, certain, and inspiring.

“HG’s workload and pipeline are the highest they have ever been and our projected turnover currently sits close to £500m.”

HG secured eight Gateway 2 approvals during 2025 as the industry grappled with long regulator waiting times and evolving submission requirements.

The contractor said the approvals pipeline has since continued to strengthen to 11 projects, giving it greater visibility over future workload as schemes now move into construction.

Benham added that while the Building Safety Act was still creating delays across the sector, it was also bringing “far better structure, pace, and control in both design and delivery”.

The group has expanded its self-delivery capability during the year with the launch of drylining and roofing divisions, while HG Offsite Systems increased bathroom pod and utility cupboard production by 135%.

Cash at bank climbed 23% to £42m while gross profit rose nearly 30% to £27m.

The contractor is now preparing for the next major regulatory hurdle as projects move towards Gateway 3 completion certification.

Benham warned: “Gateway 3, the completion certificate stage without which a building cannot be occupied, represents the next regulatory milestone.”

He said HG had already rolled out dedicated QA systems across site teams to prepare for the tougher sign-off stage and was closely monitoring Building Safety Regulator capacity as Gateway 3 volumes rise.

The contractor has also modelled the impact of the new Building Safety Levy, which comes into force in October, into future project pricing.