Leading UK contractor HG Construction has exceeded a turnover of £400m for the first time, posting a turnover of £424m in 2023. This represents an increase of 26% from 2022, when the company achieved a turnover of £336m.
The company remained profitable throughout what it described as a very challenging year, achieving a gross margin of 3.8% and a gross profit figure of £14.7m. Whilst the margin achieved was notably less than the previous year, the contractor believes that 2024 will see a return to stronger margins following the completion of legacy fixed price contracts and with less turbulent trading conditions to contend with.
HG Construction has grown significantly in the past five years, entering into new sectors and expanding into regions including Leeds, Manchester and Bristol. It has also invested into a manufacturing facility in Hull, where the company produces bespoke bathroom pods and utility cupboards for use in its schemes, offering quality, programme and environmental benefits for clients.
Adam Quinn, CEO, HG Construction, said: “We are pleased to have achieved our growth targets over what was an extremely challenging year with record price inflation. This impacted our profitability across fixed price contracts in particular, however we continued to invest in our internal delivery capabilities and this offered us some level of protection against escalating costs.
“HG Construction has undergone a period of significant growth in recent years, and we have invested in plant, procedures and staff in line with our expansion. Going forward our focus will be on revenue stabilisation and internal strengthening, ensuring that our structure, procedures and processes enable us to maintain the high standards we are committed to.
“We are proud of our teams for their hard work and dedication, keeping safety, quality and delivery at the forefront of our offering and ensuring a consistently high level of service for our valued client base. 2024 is proving to be a year of more certainty and stability and we are pleased to have secured a strong pipeline of work in our core sectors. Our focus will remain on supporting our teams to deliver exceptional standards and maximising our social value contributions across our sites. We are excited to be working on outstanding schemes across the UK and feel very positive about the next phase in our company’s evolution.”
HG’s clients include Dominus, Elysian Residences, Greystar, Manner, Meadow Residential, McLaren Property/Living, Scape, Studio Hive, Southern Housing Group and Tribe Student Housing. Recent contract wins include a 1014 bed PBSA scheme in Manchester, a 375 bed build-to-rent scheme in Leeds and a 706 bed PBSA scheme in Bristol.
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