Esh smashes targets with £80m increase in turnover

CONSTRUCTION group Esh has outperformed the market and surpassed its own expectations after increasing turnover by £80m, and doubling the size of its Leeds office.

Turnover was up 43% to £277m in 2014, outstripping its own targets of £250m. Pre-tax profits trebled, to £9.5m while the group finished the year with a strong cash position at year end of £32m.

Esh invested heavily in Yorkshire, doubling its space at Thorpe Park and appointing regional managing director Andy Gawthorpe to oversee growth in the region. It employs 250 of its 1,200 staff in Yorkshire and Humberside.

The construction division outstripped other activities in the group, overtaking housing and land, property services and business support to reach £148m of the total revenues for Esh.

There was “steady progress” for Esh in the commercial build sector in Yorkshire whilst the rest of the UK was slow to recover, but civil engineering has been a “stand-out” performer.

Esh completed a major project for Japanese engineering firm Nikken Kosakusho Europe on Rotherham’s Advanced Manufacturing Park, an 80,000 sq ft warehouse at Logic Leeds and Muse Developments’ flagship 110-acre manufacturing and distribution development in the Leeds City Region Enterprise Zone.

Mr Gawthorpe said: “Part of the reason we’ve managed to have successful years following the recession is that we have a three pronged attack with different divisions. Other businesses are very specific in their remit, which limits the work they can take on.

“The uplift in the housebuilding market has kept housing and the civil engineering functions moving forward and that’s a big part of what has made us successful.

“The speculative side of house building is supported by government initiatives with right to buy and support for younger people to get on the mortgage ladder. That catapults that industry forward and has helped it gain a bit of momentum.”

Commercial developments have been slower but Mr Gawthorpe sees cause for optimism.

He said: “The last 12 to 18 months we’ve been very selective on commercial build side, focused more on negotiated and two-stage opportunities, which helps you de-risk jobs for yourself and client compared to a ‘cut-throat’ tender process.

“The commercial build sector is still lying a little bit quieter but we’ve definitely got the shoots of opportunity there.”

He added: “Now we’ve come out of the recession, Yorkshire has shown how big its economy really is. When you see the building work going on in the centre of Leeds, you think, what recession?

“There are some pockets that are a bit slower to come back, such as in South Yorkshire and Lincolnshire. We’re through the worst of it there, but were such a big economy there are bound to be areas that are lagging behind and just need that impetus that get things moving.”

Esh has plans to expand its Yorkshire offering, and are currently working with Barnsley Council, as well as recently signing a contract with the Sheffield authorities.

“It was a year of consolidation year for the business.” Mr Gawthorpe said. “In future, we want to double size of Yorkshire region and that’s part of our five-year plan. Overall we want to secure a good market share and be seen as a Yorkshire construction business as well as a North East one, and continue in the same vein.”

“What the government needs to do now the general election is over is have a clear mandate moving forward that gives us confidence. They need to continue giving small businesses the confidence they need to continue to advance.

“We definitely have skills shortages in construction industry and it’s important they support filling this gap as well as they can. “

The firm has already committed to helping the next generation themselves, having taken on over 60 this year, well on the way to Esh’s pledge for 150 apprenticeships by 2017.

Hull-born Mr Gawthorpe continued: “Businesses are doing their bit, but continued support to fill skills gap is needed.

“There are even older people coming in, as they are seeing that the industry has potential again

“We suffer as an industry because we have big peaks and troughs in work. It makes it difficult for people to get into as we can’t ensure consistency of earning, but even through all this, it is really a rewarding industry and worth getting into.”