Profits down at Esh Group

CONSTRUCTION company Esh Group has suffered a fall in operating profits as it launched new operations in Yorkshire and Cumbria.

Turnover for the Durham-headquartered group was almost flat at £170m last year, but operating profits fell to £2.1m from £5.9m the previous year.

A major contributor to the fall was investment costs incurred in setting up new operations in Leeds and Kendal.

At the year-end Esh Group’s cash balances were more than £31m.

The company’s expansion into Yorkshire, Cumbria and the North West supported the resilient performance in turnover with a joint contribution of more than £25m being reported by Esh Group’s offices in Leeds and Kendal.

Dunelm Homes, the group’s house building business, continued to impact on overall group results.

Brian Manning, chief executive of Esh Group, said: “These figures come as no surprise; the market is weak. Although we are pleased to have maintained overall turnover at Esh Group we live by the saying; ‘turnover is vanity, profit is sanity and cash is King’.

“That’s our focus, we are managing costs, we are profitable, we have a strong balance sheet and a healthy cash position.

“Although house building is still affecting profits the team is doing very well, their sales are ahead of target and the finances of the business are contained.

“So, in short, we’re strong and we’re working hard for our clients.”