Published 3rd Oct 2023, 16:45 BST

Chief executive, Andy Radcliffe, credited a “meticulously designed business model” for softening the impact on 2022’s operating profit which stood at £3 million.

The group said that pressures on its 2022 earnings derived from long duration contracts that were priced pre-pandemic, and the ongoing battle with levels of cost inflation not seen for a generation, supply chain constraints and labour shortages being key factors.

It noted, however, that those longer-term contracts were concluded in the first half of 2023.

Esh Group chief executive, Andy Radcliffe.

Mr Radcliffe said: “Our focus on targeting routes to market and key sectors that present a lower risk profile has provided a finely balanced portfolio of revenue which has served to insulate us from the extremes of the challenges experienced by the broader industry.

“Whilst of course we have not been immune to these challenges, many of which have led to the sad demise of a number of highly respected businesses in our regions, the strength of our core revenue model has been the key differentiator in our ability to navigate these industry-wide headwinds.”

The group delivered liquidity of £19 million at the end of 2022. Turnover also increased to £261 million, up £6 million from the previous year.

Esh Group’s forward order book also grew to £600 million across its civil engineering, affordable housing, commercial build and private housebuilding divisions.

Flagship schemes for the firm include the Tyne Bridge and the Stockton Waterfront regeneration scheme.

Across Yorkshire and the Humber, the privately-owned contractor has an affordable housing pipeline worth £90 million, including four land led developments set to deliver a mix of affordable, extra care and general needs housing.

The firm’s civil engineering division also experienced a period of growth in the region, with several new projects secured since the start of 2023, representing a 100 per cent uplift in pipeline from the same time in 2022.

Mr Radcliffe added: “Our achievements, once again, are down to the unwavering efforts of our highly skilled and dedicated team of colleagues who have battled hard to manage the challenges we faced.

“We are exceptionally grateful to our clients, our supply chains and wider stakeholders, who value the role collaboration plays in ensuring mutual success.”

He added that the company will look forward to the coming years with “cautious optimism”.

North of England construction firm Esh Group hails 'healthy' profits despite year of headwinds