Esh Group order book hits record £600m

The Group saw turnover increase to £261 million, up £6 million on the previous financial year (FY2021). 

It also recorded cash liquidity of £19 million, with nothing drawn on its £7 million revolving credit line, remaining debt free. 

Chief executive, Andy Radcliffe, credited a “meticulously designed business model” for softening the impact on FY2022’s operating profit which stood at £3 million. 

The Group’s forward order book across key divisions was reported at a record £600 million, and included flagship schemes such as the restoration of the Tyne Bridge, and the Stockton Waterfront regeneration scheme. 

However, there were pressures on the Group’s FY2022 earnings due to long-term contracts priced pre-pandemic, cost inflation, supply chain constraints, and labour shortages, much like the rest of the sector. 

Over the past year, Esh also grew its apprentice numbers to 8% of its workforce. 

Outlook  

Esh is set to deliver more than 540 new affordable homes with Middlesborough housing association Thirteen Group in the coming years.  

Across Yorkshire and the Humber, Esh has an affordable housing pipeline worth £90 million. 

Its civil engineering division in the region has also seen a 100% uplift in pipeline, compared to the same period in FY2022.   

“Our focus on targeting routes to market and key sectors that present a lower risk profile has provided a finely balanced portfolio of revenue which has served to insulate us from the extremes of the challenges experienced by the broader industry,” said Radcliffe.  

“Whilst, of course, we have not been immune to these challenges, many of which have led to the sad demise of a number of highly respected businesses in our regions, the strength of our core revenue model has been the key differentiator in our ability to navigate these industry-wide headwinds. 

“Our business model ensures that we can balance out the peaks and troughs of individual market segments over their respective economic cycles, which offers a much more stable and predictable backdrop.  

“Above all, targeting sectors that present near term growth opportunities, such as affordable housing, utilities and general infrastructure, while simultaneously reducing our exposure to more technically and commercially challenging sectors of the market, provides us with a level of resilience that has been the hallmark of both our maintenance of profitability during 2022, and our expectations for both turnover growth and margin expansion over the coming years. 

“Our achievements, once again, are down to the unwavering efforts of our highly skilled and dedicated team of colleagues who have battled hard to manage the challenges we faced. We are exceptionally grateful to our clients, our supply chains and wider stakeholders, who value the role collaboration plays in ensuring mutual success. We look forward to the coming years with cautious optimism and a business model that, simply put, sees us stick to what we are good at, with supply chains that we know, and clients with whom we can nurture long term partnerships.” 

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