HG has significantly increased its turnover despite a “maelstrom” of UK and global disruption.
The Hertfordshire-based contractor reported its pre-tax profit for 2023 was down to £6.4m in 2023, compared with £15.3m in 2022.
But turnover at the firm – ranked 57 in the CN100 2023 index – increased significantly to £424m, up from £335m in 2022.
In the statement of full-year results, chairman Christopher Benham said the firm was impacted by “a maelstrom of domestic and global economic disruptors”. The stresses mainly hit legacy contracts that have now been completed.
Benham described business operating conditions as the worst-ever experienced by the firm.
He added: “The emergence of high and unexpected inflation culminated in overspend, which in turn was exacerbated by supply chain failure.”
Cash in the bank stood at £33.6m for 2023, down from £40m in 2022. But headcount was 193, up from 175 in 2022.
HG’s internal delivery model was critical to keeping accounts in the black, the firm said. Specific solutions included working with suppliers to explore options for early manufacturing commitments and securing materials with extended lead times.
Where feasible, HG also secured offsite storage facilities to mitigate potential delivery disruptions. It also monitored current and projected material and labour availability.
During the year, HG also increased its presence across cities in England including Leeds, Manchester and Bristol. The firm said its had a pipeline of approximately £500m, all at various stages of construction.
Among the pipeline are two jobs announced in the summer. In July, the firm was picked to build a 37-storey student accommodation scheme in Manchester (pictured).
And in May, the firm revealed it had been selected to build a £69m build-to-rent scheme on a former car park in Leeds.
The firm forecast a “bright outlook” for the year ahead due to repeat and new business across both public and private sectors.
Benham said: “With inflation now calming, the board is highly confident as we continue through 2024 and beyond. We have proactively addressed and embraced recent regulatory changes and we are conscious of and prepared to navigate the changing political and economic landscapes.”
