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Operating profits for Esh Holdings Limited jumped to £5.2m for 2024, up from £2.9m in the previous year, and the privately-owned firm more than doubled its cash balance to £36 million by the year end – the highest ever on record.

Pre-tax profit increased similarly from £3m to £5m.

Turnover was up by £4m to £265m, with improvements in both its contracting and development divisions driving the increase in gross profit margins to 8%.

Chief executive Andy Radcliffe said: “We’ve made real progress as a business over the past few years as we fundamentally repositioned our group to target the most attractive segments of the market, and we’re in a really good place right now – which, many would argue is at odds with the broader industry narrative that suggests challenging trading conditions are persisting.

 “During the first half of 2024, we closed out the majority of contracts that had been impacted by the aggressive rise in cost inflation over the previous two years, and in the second half of the year, every division of the group performed exceptionally well. With liquidity at an all-time-high, expanding gross profit margins, and a business plan delivering as intended, our group is well-positioned for continued success, with 2025 set to show an even greater improvement in profitability.

“That being said, we are certainly not being complacent – we must continue the relentless execution of our group strategy – a strategy that saw us through the challenging times during and after the pandemic. This, coupled with our prudent approach to working capital management, sensible work winning strategies, and quality and safe delivery, will provide a solid foundation for a prosperous future.”

The group continues to have an undrawn £6m credit facility and invested £2m last year in plant and equipment.

Esh maintains a balanced portfolio of work covering local authorities, utility and environmental companies, registered affordable housing providers, as well as the private housing sector, which helps the firm to “even out the peaks and troughs of the construction industry’s demand profile over the economic cycle”, said Radcliffe.

He added: “Our strategy of focusing on resilient market segments has served us well in recent years, culminating in a headline order book exceeding £2bn. Building on this momentum, we are actively pursuing additional opportunities within our core markets and anticipate continued growth in both turnover and margins into the future.”

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