Profits jump at Lancashire construction group
Lancashire construction and engineering company Eric Wright Group has seen its pre-tax profits jump by nearly 60% despite ongoing economic challenges.
Revealing its 2021 financial results, the Preston-headquartered group reported profits of £15.1m, up £5.6m from the previous year.
Whilst overall turnover decreased from £204.6m to £163.9m, gross profit increased from £17.3m to £20.5m.
This was largely driven by the careful selection of projects, focused risk management within the Group’s contracting businesses and the continued growth of its residential business.
Eric Wright’s investment property portfolio continued to generate stable net income returns and has grown in value year on year to £84.1m, up from £75.9m in 2020, including acquisitions in the year of £3.2m.
Following pandemic, 2021 has seen a level of recovery in many areas but certain ongoing challenges remain in others.
All divisions have carefully navigated through the risks and opportunities faced during this time, focusing on nurturing and supporting existing and new relationships.
Gill Chadwick, Group finance director, said: “Whilst global economic factors continue to create obstacles, the stability afforded by this breadth of activity, together with the strong performance of our investment property portfolio, provides the Group with resilience and confidence, and ensures we are well positioned to capitalise on future opportunities.
“The outlook for 2022 is extremely positive with the business well placed to generate sustainable, profitable growth.”
Group managing director, Jeremy Hartley said: “The Group remains focused on mitigating issues around pricing strategies and meeting the current unprecedented inflationary pressures as successfully as possible. We aim to ensure that we do not take on any undue risk and continue to carefully consider and evaluate the deliverability of every new project.
“The resilience of our business and talent and commitment of our people has again provided us with stability during another challenging and uncertain year and we are very proud to be able to report positive results once again.”
He added: “It has also never been more important for businesses to recognise the wider role they can play in their communities.
“Our commitment to providing workplace opportunities and apprenticeships for young people grew in momentum and 2021 saw us make significant progress in further defining our Group social value strategy, building on the great work already being done to date.
“This enables us to add to the activities of The Eric Wright Charitable Trust, and so maximise the overall social value impact.”