North of England private contractor Esh Group has posted a 50% increase in pre-tax profit for 2023 with bosses confident of prospects for the rest of this year.
Latest results for Esh show pre-tax profits up to £3.1m from £2m last year while turnover remained flat at £261m and the order book hit a record £1.6bn.
The firm’s portfolio centres on work for local authorities, utility and environmental companies, registered affordable housing providers and the private housing sector.
Chief Executive Andy Radcliffe 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 – this design has proven a success and seen us through the challenging times that the industry has experienced over the last few years.
“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.
“Despite the broader economic picture demonstrating a degree of volatility, we remain optimistic about the future.”
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.
“We are also confident that the core policy agendas for the new Government will provide a favourable back drop for our chosen market segments, and therefore see only positives for our business on the back of the election result.”
