{"id":491169,"date":"2024-01-03T11:00:10","date_gmt":"2024-01-03T11:00:10","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=491169"},"modified":"2024-01-05T14:18:43","modified_gmt":"2024-01-05T14:18:43","slug":"10-companies-to-watch-in-2024","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/sections\/long-reads\/10-companies-to-watch-in-2024-03-01-2024\/","title":{"rendered":"10 companies to watch in 2024"},"content":{"rendered":"

Which companies are likely to have the biggest impact on the industry in the year ahead?<\/b><\/span><\/em><\/p>\n

\n

ISG<\/h3>\n

\"\"<\/p>\n

In November, ISG felt moved to issue a statement denying \u201cunsubstantiated, wholly inaccurate and false claims\u201d about its financial health\u201d. However, it did not elaborate on the nature of these claims.<\/p>\n

Last year did not start well for ISG, with the January administration of gigafactory client Britishvolt. It subsequently emerged that main contractor ISG was not owed anything by Britishvolt at the time of its administration, unlike some others involved in the project. Whether the project can be revived, and whether ISG will be reappointed, will be a development to watch for in 2024.<\/p>\n

Another ISG job, the \u00a3700m Sunset Waltham Cross Studios in Hertfordshire (pictured), is also under question after it was paused due to client concern about high interest rates and inflation.<\/p>\n

But the firm has continued to land big jobs that should keep it busy in 2024. Examples include a \u00a3150m fit-out job for Google in London\u2019s King\u2019s Cross, and \u00a3155m of prison work.<\/span><\/p>\n<\/div>\n

Osborne<\/h3>\n

\"\"<\/p>\n

Having sold three of its divisions since 2021, the UK\u2019s 56th largest contractor in the CN100 2023 is set to look a lot smaller when it publishes its next set of accounts. It offloaded its \u00a3130m-turnover infrastructure business to private equity firm Sullivan Street in August 2021, returning to profit that year thanks partly to the performance of its offsite arm Innovare.<\/p>\n

But in March 2023, \u00a311.3m-turnover Innovare was sold to Bowmer + Kirkland as Osborne chief executive Mark Hoyland was replaced by Dave Smith. Then, in September, it divested its \u00a334.5m maintenance arm Osborne Property Services to social-housing specialist Cardo Group.<\/p>\n

The company said the moves were part of a strategic review and 2024 would see it continue to focus on growth in its \u201ccore construction and development business\u201d.<\/p>\n

\n

Glencar<\/h3>\n

\"\"<\/p>\n

Formed in 2016, the St Albans-based contractor has risen at an astronomical rate to see turnover reach \u00a3417.75m. Only large enough to file full accounts since 2020 \u2013 the year it landed work on a major vaccine manufacturing facility at the Harwell Campus in Oxfordshire \u2013 Glencar is now the 46th largest contractor in the UK.<\/p>\n

Its latest published accounts saw turnover more than double, though pre-tax profit was down to \u00a3796,000 from \u00a32.3m. In the accounts, chief executive Eddie McGillycuddy stated that the firm would target \u201ccontinued growth\u201d and aim to increase profit margins. Since then, it has won projects including a \u00a3150m innovation centre for Moderna at the Harwell Campus in Oxfordshire and a \u00a3125m data centre (pictured) near Heathrow Airport.<\/p>\n<\/div>\n

Lendlease<\/h3>\n

\"\"<\/p>\n

The Australia-headquartered multinational cut 10 per cent of its global workforce amid an eventful few months in which it posted an A$238m (\u00a3122m) pre-tax loss for the year to 30 June 2023.<\/span><\/p>\n

Lendlease Europe chief executive Neil Martin departed after four years at the helm and was replaced by Andrea Ruckstuhl. <\/span><\/p>\n

The company remains confident about its involvement in the HS2 Euston project, on which it was named master developer in 2018, stating that its contract still stands despite prime minister Rishi Sunak scrapping existing arrangements and pulling public funding. However, with the Department for Transport declining to confirm that, the issue will be one to watch in the new year.<\/span><\/p>\n

More positively, Lendlease is set to start work on a \u00a32bn regeneration scheme in North London after a court recently threw out objections from Tottenham Hotspur. <\/span><\/p>\n

\n

Reds10<\/h3>\n

\"\"<\/p>\n

The modular specialist has posted three successive years of revenue and profit growth, seeing turnover reach \u00a383.8m in the year to 31 March 2023, up from \u00a337m two years earlier.<\/p>\n

Now a trusted government partner, it was the eighth-largest supplier to both the Ministry of Justice and the Department for Education in 2022\/23. For the latter it has since helped provide school buildings for establishments hit by the RAAC crisis. At the end of last year, it also completed the first project for the British Army\u2019s Single Living Accommodation Programme at <\/span>Imjin<\/span> Barracks (pictured). <\/span><\/p>\n

Reds10 also landed the prestigious Specialist Contractor of the Year (\u00a325m-plus turnover) prize at the CN Specialists Awards 2023. Judges praised its \u201ccrystal-clear vision and streamlined approach, with a strong focus on the customer and end user\u201d.<\/span><\/p>\n

The firm has big ambitions. Ex-Mace director Shaun Tate joined in August to \u201chelp to accelerate our ambition to become the leader in a new breed of tier one contractors\u201d, according to chief executive Matt Bennion.<\/span><\/p>\n<\/div>\n

Costain<\/h3>\n

\"\"<\/p>\n

Costain will be hoping for a better 2024 than its second half of 2023, which saw it withdraw from the \u00a31.3bn A66 Northern Trans-Pennine upgrade less than a year after its appointment. A \u00a3100m roads scheme for Lancashire County Council also fell through over rising costs, and a National Highways job to upgrade barriers on the M62 was cancelled.<\/p>\n

HS2 has been a big part of the firm\u2019s work but the Department for Transport has not yet confirmed the status of the contract Costain holds in a joint venture with Skanska and Strabag to tunnel from Old Oak Common to Euston, following the cut in public funding for the latter.<\/p>\n

In September, Costain also announced that the future of its \u00a33.5m technology centre in Somerset was in doubt, along with 25 jobs.<\/p>\n

\n

Readie Construction<\/h3>\n

\"\"<\/p>\n

The logistics-focused contractor is another fast grower, rising 20 places to 55th in the CN100 2023 after increasing its revenue from \u00a3178.8m to \u00a3345m for the year to 31 March 2022.<\/p>\n

Since then, accounts for the year to 31 March 2023 show turnover reaching \u00a3421.1m, although the Romford-headquartered firm\u2019s margin shrank due to supply-chain issues and inflation. <\/span><\/p>\n

Recent clients include the likes of DP World (pictured), DHL, and a speculative development for Altitude that has been leased to Amazon.<\/p>\n

In 2021 it became an employee ownership trust (EOT) \u2013 at the time, it was the largest contractor to be sold to its staff in that manner.<\/p>\n

Questions over the ownership model have been raised recently but Readie has so far fared better than the likes of fellow EOTs Buckingham Group and Michael J Lonsdale, which both collapsed last year.<\/p>\n<\/div>\n

National Highways<\/h3>\n

\"Lower<\/p>\n

Eyes will be on the government\u2019s roads client in several key areas, including its preparation for the Road Investment Strategy 3 (RIS3) spending period running from 2025-2030 that \u2013 among tight purse strings \u2013 will focus on small-scale maintenance and improvement rather than major new roadbuilding.<\/p>\n

The future of one of its few potential multibillion projects is set to be decided after a planning inspectorate hearing on the \u00a38bn Lower Thames Crossing (pictured) closed on 20 December. The scheme\u2019s start date was knocked back two years in March in order to save money, alongside the \u00a3320m Arundel bypass in Sussex and the \u00a3335m A5036\/Princess Way job in Liverpool.<\/p>\n

Contractors working on National Highways projects have also been told to up their game, with CN<\/i> revealing earlier this year that poorly-performing companies are being excluded from bidding on new jobs as the agency seeks to rein in budgets and schedules.<\/p>\n

\n

Keltbray<\/h3>\n

\"\"<\/p>\n

Keltbray\u2019s most recent accounts, covering the 2022 calendar year, show it returned to profit and grew revenue by 35 per cent \u2014 but it still faces uncertainty in a few areas.<\/p>\n

In April 2024, the diversified firm is due to appear at a tribunal for its appeal against a \u00a320m fine imposed by the Competition and Markets Authority (CMA) in March 2023.<\/p>\n

The company \u2014 one of 10 that the CMA fined for \u201cillegal cartel agreements\u201d made when bids were submitted for competitive tenders \u2014 argues the watchdog erred in calculating the level of its penalty.<\/p>\n

In addition, the government has postponed until March 2024 the planning decision on the \u00a31.3bn A66 Trans-Pennine job on which Keltbray is a contractor.<\/p>\n

It also remains to be seen whether the Network North programme can financially replace the future HS2 phase two work that the firm hoped to land.<\/p>\n<\/div>\n

Galliford Try<\/h3>\n

\"\"<\/p>\n

Five years ago Galliford was reeling from its involvement in the ill-fated Aberdeen West Peripheral Route, it had to raise capital through a rights issue and it focused on housebuilding.<\/p>\n

In 2019 it sold off its residential divisions in a \u00a31.1bn deal which, while borne out of necessity, served to insulate it from the subsequent housing-market downturn.<\/p>\n

Galliford\u2019s pre-tax margin remains thin but its latest results, for the year ending 30 June 2023, saw a 13 per cent revenue increase to \u00a31.39bn. Pre-tax profit nearly doubled (reaching \u00a310.1m) and the firm says it is on course to more than double it again.<\/span><\/p>\n

Galliford is targeting revenue of \u00a31.6bn by 2026 and a profit margin of 3 per cent. While this may be around half of its 2018 turnover, the firm wants to show that smaller can be more stable.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Which companies are likely to have the biggest impact on the industry in the year ahead? ISG In November, ISG felt moved to issue a statement denying \u201cunsubstantiated, wholly inaccurate and false claims\u201d about its financial health\u201d. However, it did not elaborate on the nature of these claims. Last year did not start well for …<\/p>\n","protected":false},"author":53981,"featured_media":491175,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[532,552,533,535,538,559,39315,526],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n