Construction group poised for the future with £1.6bn record order book

Contractor Esh Group, which has a base in Leeds, has posted a 50% increase in pre-tax profit for 2023.

Despite challenges for the construction sector, Esh reported pre-tax profits of £3.1m, up from £2m the previous year.

The firm’s portfolio centres on work for local authorities, utility and environmental companies, registered affordable housing providers, as well as the private housing sector.

Chief executive Andy Radcliffe said the business now has its largest forward order book in its 25-year history.

He 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.

“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.”

Esh Group says it continued its focus on driving capital efficiency across all operations, leading to an increase in liquidity to £23m, up £4m from the previous year.

The company remained debt free with nothing drawn on its £6m credit line.

Whilst turnover remained at £261m, improvements in both the business’s contracting and development performance resulted in the reported increase in pre-tax profits.

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.”

Esh’s forward order book across its civil engineering, affordable housing, commercial build, and private housebuilding divisions has increased significantly in the year.

The 750-strong contractor has enjoyed market share growth within the affordable housing sector, with the £18m Ripleyville regeneration scheme in Bradford for Accent Housing featuring within its live portfolio, alongside a pipeline of five developments which will deliver a mix of affordable and extra care housing in Hull, Wakefield and East Riding.

Esh’s civil engineering division continues its period of growth in the Yorkshire region, having delivered three active travel schemes in Barnsley and Rotherham.

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