Esh Group posts record £1.6bn orderbook

One of the largest privately-owned contractors in the North of England has posted a 50 per cent rise in profits and a record order book valued at £1.6 billion. 

While turnover remained static at £261 million, Esh Group reported pre-tax profits of £3.1 million in FY2023, up from £2 million in the previous financial year. 

Chief executive Andy Radcliffe said the contractor is looking to the future with the largest forward order book in its 25-year history, following growth across its civil engineering, affordable housing, commercial build, and private housebuilding divisions in the year. 

In the private housing market, Homes by Esh is on course to nearly double its live developments in the North East before the end of the year. 

“Our headline order book figure is substantial, and crucially it provides over 10 years of pipeline visibility for the group,” said Radcliffe.  

“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.” 

The firm’s portfolio centres on work for local authorities, utility and environmental companies, registered affordable housing providers as well as the private housing sector.  

Esh Group said the result was also due to improved performances in both its contracting and development businesses. 

The 750-person contractor increased its liquidity by £4 million from the previous year, to £23 million, while remaining debt free and nothing drawn down from its £6 million credit line. 

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.” 

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