Employee owned contractor returns to pre-pandemic levels of growth as it heads towards a record turnover

Recently transitioned employee ownership construction contractor, developer and investor group, Barnfield Construction, has seen its operating profit increase twofold and its turnover increase year-on-year by more than 10 per cent.

The nigh on 50-year Lancashire-based firm, which recently made the switch to Employee Ownership Trust (EOT) status, has seen its turnover increase by 12.6 per cent to £82.4 million for the year ended 31 December 2024 (FY2023: £73.2 million).

It is the first time it has hit the £80 million mark and the biggest increase since 2019 when it reached a record £85.9 million turnover at a 15.2 per cent increase from 2018’s £74.5 million before it felt the impact of COVID-19.

Its operating profit stands at £5.3 million – a 201.4 per cent increase year-on-year from £1.7 million.

Founded in 1976, the year saw the Webber family-run company make the move to EOT in October, with 60 per cent of its share given to the trust and the remaining 40 per cent retained by the Webber family.

The move enabled it to ensure the long-term success of the business while “empowering” its staff, with 90 per cent of its workforce taking part in training and development in the last 12 months.

Involved in construction projects, such as those in the industrial, commercial, and residential sectors, its 2024 year saw a gross profit margin of 11.5 per cent and profit before tax of £5.8 million and saw it payout a dividend of £5.2 million (FY2023: £2.4 million) to its shareholders.

The order book sat at around £70 million and this, along with a number of other contracts the firm expects to be awarded shortly, has seen it budget a turnover in excess of £80 million for the forthcoming year.

In a strong position, financially, the business continues to look at investing in new development opportunities in the future with cash balances of £12 million at the end of the year.

It currently has one bank loan of £673,411 which is secured by the investment property owned and remains compliant with loan conditions.

Tim Webber, chairman and managing director at Barnfield Group, said the shift to EOT marked a significant milestone.

“We believe that empowering our employees to become owners will not only enhance our workplace culture but drive our success as a company,” he said.

The firm, which has a homes division and works within both the public and private sectors and multiple joint venture companies, will continue 2025 focused on four areas of growth – tenders, homes, development, and joint ventures.

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