Investments prepare £275m-turnover construction group for the future
CONSTRUCTION company Esh Group has been investing in its long-term future as revenues remained static and profit dipped following a turbulent year in the sector.
“We expected a bit more of an increase,” said chief executive at Esh Group Brian Manning, following a slight decline in pre-tax profits for the North East based group.
Profits fell from £9.5 in 2014 to £8.6m for the year to December 2015 following major investment in new regions including Yorkshire & the Humber, Scotland and Cumbria.
Revenues stayed steady at £275m.
The firm had a record year in 2014, a year which was difficult to top, according to Mr Manning.
“We’ve had a year of consolidation following the 14% increase in turnover in 2014 – it was a big year for us,” he said. “Now it is more likely that turnover and profits will probably be flat in the coming year.”
Despite this plateau, Esh has had a steady year with good performances particularly in the civil engineering and commercial build divisions
“Our business relies on diversity, from civil engineering to social housing and commercial builds. This has soften the blow and will secure our future.
Like much of the construction sector, Esh has been following the lead up and fallout of the EU referendum. 
Scarborough Market Hall design 2016
Mr Manning said: “We’re seeing high level indicators with the decline of the pound, in markets and share prices. Though generally back to normal, housebuilders have really been hit.”
“At this early stage it’s hard to say how it will all play out and it is the uncertainty of it all that concerns us.”
Mr Manning acknowledges that the UK has had a lot of European funding for projects. He said: “Parts of Yorkshire and the North East have been big gainers, and we want to know if that funding is going to continue, will the government support them in the same way even after this two year transition period? 
“We’ve got a new prime minister in much quicker than anticipated which will help us, but business doesn’t like uncertainty.”
Despite the uncertainty in the market, Esh has forged ahead with growth plans leading up to the referendum. Esh Construction recently announced the opening of a regional operations centre in Swillington, providing offices and 8,000 sq ft of warehousing to support the Yorkshire and East Midland teams.
Yorkshire operations employ 250 people. Esh has been active in the regional market during the year, winning projects including the construction of a £5m John Lewis warehouse at Logic Leeds, the £2.7m redevelopment of Scarborough Market Hall (above) and a £5.8m project on the M1 near Barnsley.
Andy Gawthorpe, regional managing director of Esh said: “Our new operations centre will help us operate more effectively across the region and provide a base for future growth. It is a vote of confidence in the strength of the construction sector in Yorkshire.”
