Esh Group 'in good place' as big projects lift profits

A construction, civil engineering and property services firm has hailed its long-term prospects after notching a significant earnings boost.

Esh Group saw annual operating profit leap 80 per cent to £5.2 million in 2024 as cash balances jumped to a best-ever £36 million.

Bosses say its progress was fuelled by a blueprint targeting “the most attractive” market segments and headline projects that include the refurbishment of Newcastle’s Tyne Bridge.

And with more than £2 billion in forward order book visibility, they add the Bowburn-headquartered business is in a “really good place” to continue confounding a “broader industry narrative that suggests challenging trading conditions are persisting”.

Highlighting its cross-sector presence, chief executive Andy Radcliffe said its latest results – which saw turnover increase by £4 million to £265 million – had benefited from flagship work to transform a section of Stockton’s high street into a sprawling riverside park and the 750-home Seaham Garden Village.

He added further agreements, which include a place on Gentoo Group’s £170 million ‘Gentogether’ home improvement programme and status as sole delivery partner for Northumbrian Water Group’s wastewater networks planned and reactive repairs and maintenance framework, leave it primed for further growth.

He said: “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, and we must continue the relentless execution of our group strategy.

“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.

“We are strongly positioned to navigate the ups, downs and challenges all businesses face, particularly in the construction industry.”

The business recently began work on a scheme to redevelop Eston Precinct, near Middlesbrough, and its order book also includes a project to create a new bus station in Bishop Auckland.

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