Esh Group chief executive Andy Radcliffe
Esh Group’s turnover remained at £261m for 2023 but improvements in both its contracting and development performance resulted in a pre-tax profit of £3.1m, up from £2.0m the previous year.
It is also well-placed for a return to growth with a record order book worth £1.6bn.
Chief executive Andy Radcliffe said: “Our strategically designed business model stands out for its inbuilt resilience. At its core is the ability to even out the peaks and troughs of the construction industry’s demand profile over the economic cycle – this design has proven a success and seen us through the challenging times that the industry has experienced over the last few years.
“Our headline order book figure is substantial, and crucially it provides over 10 years of pipeline visibility for the group. Having invested heavily in capacity, resources and technology, we are equipped to execute our strategic growth plans and are actively seeking further opportunities within our core markets, and so expect to see both turnover growth and margin expansion over the coming years. Despite the broader economic picture demonstrating a degree of volatility, we remain optimistic about the future.”
Esh Group continued its focus on driving capital efficiency across all operations, leading to an increase in liquidity to £23m, up £4m from the previous year, while remaining debt free with nothing drawn on its £6m credit line.
Radcliffe added: “During the year, we concluded a wide range of projects that were heavily impacted by post-pandemic supply chain and inflationary pressures, which was no mean feat and a major milestone which gives rise to a more favourable back drop for 2024. These negative factors were more than offset by stronger performances on newer contracts, which were supported by considerable improvements in operational execution.
“Coupled with the inflationary environment remaining relatively benign, we are continuing to see buoyancy in our target sectors. The desire to rebalance economic prosperity across the country is driving funding for major infrastructure and regeneration schemes, whilst the ongoing demand for new social housing stock and retrofitting of existing stock in line with decarbonisation targets has continued to fuel growth.
“We are also confident that the core policy agendas for the new government will provide a favourable back drop for our chosen market segments, and therefore see only positives for our business on the back of the election result.”
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