Eric Wright Group has announced its FY2022 results – with an increase in underlying trading profit for the fifth consecutive year.
Underlying profit increased to £11.9 million from £10.2 million in the previous year. Turnover also increased to £168 million (FY2021: £163.9 million).
Another highlight for Preston-headquartered Eric Wright was its return to profitability despite sector inflation, supply chain risk and interest rate rises.
The construction business continues to focus on “the management of risk and selection of projects that can be delivered at appropriate margins”, said the Group.
The year also saw the disposal of Artis Park, Winsford Industrial Estate, a joint venture development which generated a net income of £3.8 million.
The Group’s property portfolio produced strong levels of rental income despite the pressures on tenants. However, wider economic conditions and lack of market transactions had an adverse impact on property yields, resulting in a revaluation deficit of £4.8 million. Overall profit before tax was reduced to £7 million from £15.1 million in the previous year when the revaluation gain totalled £5 million.
FY2022 also saw the Group increase employee numbers to 784 (FY2021: 691).
Gill Chadwick, Group finance director, said: “These financial figures represent the steady progress made and continued strength and resilience shown across the Group as we trade out of the Covid era. We have seen a significant £11.7 million increase on our balance sheet to £90.6 million, which is the stable base from which we will continue to build. The Group has performed well, and we are especially pleased to see the construction business back in profit.”
The Group’s social value strategy
Jeremy Hartley, Group managing director, added: “The ongoing success of the business is primarily down to the hard work and loyalty of our people, the long-standing relationships and partnerships we have with our clients. This diversity sustains the Group’s resilience, helping us to mitigate exposure to risk and allowing us to concentrate on our strategy for measured and sustainable growth where our returns are either invested back into the business or used to support the charitable work of the Eric Wright Trust across the region.
“There is a powerful synergy between the Trust’s charitable giving and the Group’s social value strategy which is delivered through our day-to-day activities, and we believe this combined approach can have a genuine impact on the people and communities where we work. This is at a time when this wider impact from our businesses activities has never been more important, so we will continue to create our profit with a purpose.
“With our roots firmly in the North West, we look forward to continuing our work across the region, not only through construction, development and infrastructure improvements, but by transforming our communities with flagship regeneration projects in places such as Preston and Burnley.”
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