Modular construction developer Reds10 is positioning the NHS hospital building programme as a cornerstone of its next growth phase, as it targets annual turnover of £500m.
The business has developed a prototype modular in-patient hospital bedroom designed to support the government’s Hospital 2.0 ambition under the New Hospital Programme. If approved, the room could become a standardised model deployed across future hospital developments, offering the NHS a repeatable, modular solution to accelerate delivery of new healthcare facilities.
The healthcare focus comes as Reds10 prepares for its next stage of expansion, following a year of steady performance. The company reported revenue of £145m for the year ending 31 March 2025, alongside continued investment in advanced manufacturing, automation and data-led design.
Operating margin held at 4.8%, with pre-tax profit stable at £7m. Reds10 remains debt free, holding £20m in cash, and is forecasting revenue of approximately £160m in the current financial year.
At its Driffield manufacturing campus, two of the firm’s five factories are now fully industrialised, supported by increased automation and data-driven production processes. This investment underpins a secured pipeline in excess of £350m, spanning long-term programmes across defence, education and justice.
Reds10 has been appointed as one of five contractors on the Defence Infrastructure Organisation alliance delivering single living accommodation for the Armed Forces. The developer also holds positions on the London Construction Programme public-sector education framework and the NHS Shared Business Services Modular Buildings 3 framework.
Alongside healthcare, the business is targeting growth in affordable housing and temporary accommodation, applying its industrialised delivery model across multiple sectors.
Chairman Paul Ruddick said the company’s performance demonstrated the resilience of volumetric construction when backed by the right strategy.
He said the business had defied wider challenges in the sector by diversifying income streams and taking a long-term approach to investment. Following a period of consolidation, Reds10 is now accelerating the industrialisation of its design, manufacturing and construction processes, with artificial intelligence embedded throughout its operations.
Looking ahead, Ruddick said the developer sees significant opportunity in both health and residential markets, where its scalable, industrialised model can support the next generation of buildings and infrastructure.
Building, Design & Construction Magazine | The Choice of Industry Professionals
