HG Construction hits record turnover despite profit dip

HG Construction has posted record turnover, despite suffering profit loss, in its latest financial results.

Turnover for the year ended 31 December 2023 increased 26 per cent to £424 million, from £336 million in 2022.

However, profits took a dip with gross profit down to £14.7 million from £22.0 million in 2022, while it achieved a gross margin of 3.8 per cent, compared to 6.5 per cent the previous year .

HG Construction, founded in 2000, expanded into regions including Leeds, Manchester and Bristol over the past five years.

In July, the Hertfordshire-headquartered firm was appointed to deliver a £200 million, 1,014-bed purpose-built student accommodation (PBSA) scheme in Manchester, for developer Greystar.

Adam Quinn, CEO, HG Construction, said: “We are pleased to have achieved our growth targets over what was an extremely challenging year with record price inflation. 

“This impacted our profitability across fixed price contracts in particular, however we continued to invest in our internal delivery capabilities and this offered us some level of protection against escalating costs.

“HG Construction has undergone a period of significant growth in recent years, and we have invested in plant, procedures and staff in line with our expansion. 

“Going forward our focus will be on revenue stabilisation and internal strengthening, ensuring that our structure, procedures and processes enable us to maintain the high standards we are committed to.

“2024 is proving to be a year of more certainty and stability and we are pleased to have secured a strong pipeline of work in our core sectors.  

“Our focus will remain on supporting our teams to deliver exceptional standards and maximising our social value contributions across our sites.”

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