A Lancashire-based construction firm has reported three consecutive years of profit, driven in part by framework wins, bouncing back from losses in 2021, despite ongoing industry viability concerns.
Eric Wright Construction has seen its turnover for 2024 rise 18.7 per cent to £105.3 million, up from £88.6 million in 2023, nearing pre-pandemic levels of £113.6 million in 2019.
While its pre-tax profit also increased to £2.5 million (FY2023: £2.3 million), the third increase in a row and a sharp recovery from the £306,763 loss in 2021.
Its operating profit remained stable at £2.3 million (FY2023: £2.2 million).
The business did suffer the cancellation of one “significant project”, but managed to offset this with an additional £16 million in turnover from new project wins.
Key projects include ongoing work for clients such as Torus, Muse Places, Lancashire County Council, and Great Places, with frameworks continuing to secure new contracts like the North West Construction Hub and JV North’s £500 million social housing initiative.
The company’s parent, Eric Wright Group, also reported strong financial results for 2024, with pre-tax profit more than doubling to £13.6 million from £5.8 million in 2023.
Turnover rose by a quarter to £291.7 million (FY2023: £232.3 million), driven by a growing project pipeline across its contracting divisions, including construction, water, and civil engineering.
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Despite the positive results, Eric Wright Construction faces challenges, including delays due to the Building Safety Act’s Gateway process and project viability issues, impacting timelines and planning certainty.
In response, the company has adopted a selective, disciplined approach, focusing on two-stage tender opportunities and only securing work with achievable margins.
Chief operating officer and managing director of construction, John Hartnett credited the company’s success and and its more than 80 per cent secured order book for 2025 to its long-term client relationships and team.
“To achieve a third consecutive year of substantial profit is testament to our long-standing client relationships and the expertise and skill within the construction team,” he said.
“We have secured a very strong order book for the year ahead and will continue to focus on delivering high quality builds while adopting tight commercial control and effective site management.”
Hartnett also highlighted broader industry concerns.
“While this result should be celebrated, the contracting industry does need to establish a positive return as the norm and not the exception or the sector will cease to be viable,” he added.
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