The Durham-based firm, which now has offices in Yorkshire, Cumbria and Scotland, generated revenue of £275m last year, similar to 2014.

But pre-tax profit slipped back from £9.5m to £8.6m, while cash balances were also slightly down on the previous year at £29m.

Brian Manning, CEO, said: “2015 was always anticipated as a year of consolidation in terms of turnover given the growth in 2014.

“Profit has been affected by a number of factors including; market conditions, investments in business outside the North East and costs ahead of a major IT project.”

“More importantly, our medium to longterm plans are soundly based and recognise that we need to consolidate further during 2016 and into 2017 to allow us to then start growing again, subject to market conditions.”

The group, which employs more than 1,200 people across the North and Scotland, won significant work in 2015 including a ten-year contract to carry out work on Northumbrian Water’s water and wastewater networks.

The Group’s Esh Property Services business was also appointed to the four year Broadacres Framework, a £160m scheme which involves the construction of 1,600 homes in the North East and Yorkshire over four years.

Development performance with Esh Homes and Esh Developments improved in 2015, as planning permission was secured for 450 houses and retail development at Philadelphia in Sunderland.

Work on this site will start in 2016 and provide revenues from 2017 onwards.

Manning added: “The construction industry is showing signs of sustained recovery and with our strong cash position, Esh Group is well positioned to lead the new opportunities with our partners once areas such as devolution and the EU are more settled.”

 

News Source: Construction Enquirer