Operating profits for Esh Holdings Limited jumped to 拢5.2m for 2024, up from 拢2.9m in the previous year, and the privately-owned firm more than doubled its cash balance to 拢36 million by the year end 鈥� the highest ever on record.
Pre-tax profit increased similarly from 拢3m to 拢5m.
Turnover was up by 拢4m to 拢265m, with improvements in both its contracting and development divisions driving the increase in gross profit margins to 8%.
Chief executive Andy Radcliffe said: "We鈥檝e made real progress as a business over the past few years as we fundamentally repositioned our group to target the most attractive segments of the market, and we鈥檙e in a really good place right now 鈥� which, many would argue is at odds with the broader industry narrative that suggests challenging trading conditions are persisting.
聽鈥淒uring the first half of 2024, we closed out the majority of contracts that had been impacted by the aggressive rise in cost inflation over the previous two years, and in the second half of the year, every division of the group performed exceptionally well. With liquidity at an all-time-high, expanding gross profit margins, and a business plan delivering as intended, our group is well-positioned for continued success, with 2025 set to show an even greater improvement in profitability.
鈥淭hat being said, we are certainly not being complacent 鈥� we must continue the relentless execution of our group strategy 鈥� a strategy that saw us through the challenging times during and after the pandemic. This, coupled with our prudent approach to working capital management, sensible work winning strategies, and quality and safe delivery, will provide a solid foundation for a prosperous future.鈥�
The group continues to have an undrawn 拢6m credit facility and invested 拢2m last year in plant and equipment.
Esh maintains a balanced portfolio of work covering local authorities, utility and environmental companies, registered affordable housing providers, as well as the private housing sector, which helps the firm to 鈥渆ven out the peaks and troughs of the construction industry鈥檚 demand profile over the economic cycle鈥�, said Radcliffe.
He added: 鈥淥ur strategy of focusing on resilient market segments has served us well in recent years, culminating in a headline order book exceeding 拢2bn. Building on this momentum, we are actively pursuing additional opportunities within our core markets and anticipate continued growth in both turnover and margins into the future.鈥�
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