Profits have increased by 80% in the latest financial results posted by North of England contractor Esh Group.

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

Driven by a strategically designed business model which targets sectors that are underpinned by strong and sustainable demand drivers, Esh Group has more than £2bn worth of visibility in its forward order book, which gives rise to long-term confidence in future revenues for the business, according to chief executive Andy Radcliffe.

“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,” 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.”

 But he added: “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.”

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

The 800-strong contractor was recently appointed as sole delivery partner for Northumbrian Water Group’s (NWG) wastewater networks planned and reactive repairs and maintenance framework, further strengthening its forward order book by £160m. The new contract, combined with existing frameworks for the AMP 8 programme, has primed Esh for significant growth in the wastewater and environmental sector.

The Tyne Bridge Restoration, Stockton Waterfront Urban Park and 750-home Seaham Garden Village are just some of its live projects in the North-east, while the Ripleyville regeneration development and the refurbishment of Hull’s Drypool Bridge are amongst its high-profile schemes in Yorkshire.

 By growing its land led route-to-market in the affordable housing sector, Esh has seen three new projects worth a combined £50.5 million get underway in Gateshead, Bridlington and Hull as it helps registered providers to achieve their new build homes targets.