Focusing on regional work has paid off for Esh Group, according to its chief executive.<\/p>\n
In an exclusive interview with Construction News<\/em>, group chief executive Andy Radcliffe said that targeting contracts in the North East had delivered strong financial results and secured future business.<\/p>\n Radcliffe spoke\u00a0after announcing the firm\u2019s results for 2023, which included a pre-tax profit of \u00a33.1m, up from \u00a32m the previous year.<\/p>\n Although turnover remained at \u00a3261m, the firm has improved its liquidity to \u00a323m, up by \u00a34m from the previous year. It also did not rely on its \u00a36m credit line.<\/p>\n Radcliffe reflected: \u201cWe\u2019ve put a very intense focus on the balance sheet as well as profit and loss. It\u2019s been a hell of a journey but I\u2019m supported by an incredibly talented team of people.\u201d<\/p>\n The reduced financial stress has delivered gains beyond the financials.<\/p>\n Radcliffe said: \u201cThere are huge benefits; we\u2019re not sleeping with one eye open. We\u2019re paying our supply chain promptly. That creates a virtuous circle of loyalty and best pricing.\u201d<\/p>\n There\u2019s been another advantage to focusing on work closer to the firm\u2019s Durham head office. Radcliffe\u2019s team get earlier warnings of projects that could be going wrong.<\/p>\n That wasn\u2019t always the case during what he refers to as \u201cthe Dark Ages of London and the south coast\u201d.<\/p>\n \u201cThe lack of proximity to the partnerships was an issue,\u201d he said. \u201cWe\u2019re now up and down that A1 corridor. We\u2019ve got close proximity and for our team, they can be home at night. That can be a factor that helps with loyalty and stability.\u201d<\/p>\n And right now, the region is very active in terms of investment, particularly projects that boost connectivity around Newcastle.<\/p>\n A key figure in this is Tees Valley mayor Lord Ben Houchen, who has \u201cbeen very active\u201d, according to Radcliffe.<\/p>\n \u201cThere\u2019s a huge amount of projects that will require infrastructure and connectivity,\u201d Radcliffe told CN<\/em>.<\/p>\n The chief executive is also proud of the emphasis on employing locally and buying locally. \u201cWe play hard on that local angle,\u201d he said. \u201cIt\u2019s quite an important factor.\u201d<\/p>\n So what about the new government talking about building more infrastructure and housing? Could Esh Group become Labour\u2019s new friend in the North?<\/p>\n It\u2019s not about party colours, Radcliffe said. \u201cThe political instability of the past few years has been miserable. Whatever your political persuasion, you just want to see some certainty,\u201d he added.<\/p>\n Stability with inflation will also help \u201cprice with confidence\u201d.<\/p>\n But he is concerned about the lack of planning skills in local authorities that could hold projects up.<\/p>\n There\u2019s a lot that Radcliffe wants to see change, starting with the industry\u2019s image \u2013 critical to solving the skills crisis.<\/p>\n \u201cIt\u2019s still got the image of muck, machines and bricks on site. You can sit and moan or you can do something about it.\u201d<\/p>\n So the firm is working with further education colleges in Yorkshire and the North East with the aim of getting the right skills in the right place \u2013 including digital transformation, data and AI. Esh is also working with academies across the region on a skills initiative that includes mock interviews held at Newcastle\u2019s giant sports arena.<\/p>\n The firm is also running an education programme in primary schools aimed at changing industry perceptions in the early years. \u201cWe\u2019re also driving very hard to shift the gender balance. At that age, gender doesn\u2019t matter. That\u2019s very powerful,\u201d Radcliffe said.<\/p>\n The basis of the firm\u2019s success was a rationalisation programme, started in 2019, that cut 26 businesses down to five complementary activity groups. Among the sales was its Scottish subsidiary Finlaysons in 2020.<\/p>\n The strategy and timing meant the firm was ready for the post-Covid inflation that impacted the sector, according to Radcliffe.<\/p>\n He said: \u201cI took over a business that was far too diverse. There had been a very aggressive spurt of buys and startups It was on the brink of being broken.<\/p>\n \u201cI had 26 businesses when I started. Those were gradually reduced and we\u2019re now down to five.\u201d<\/p>\n Also to go was a fencing and landscaping firm plus a plant hire business.<\/p>\n The firm is now focused on civil engineering, retrofit, social housing and lastly private housing.<\/p>\n The logic behind the decision was simple, according to Radcliffe. \u201cYou need to understand each segment [of the sector] over the long run.<\/p>\n The overexposure in multiple parts of the industry meant only one thing, he said: \u201cGrowth when they\u2019re in boom but misery when they\u2019re in bust.\u201d<\/p>\n Esh Group kept the utilities business \u2013 \u201cquite frankly they\u2019re recession-proof\u201d. The firm has also stayed with both social housing and private housing \u2013 \u201cwhen one is down, the other is up\u201d.<\/p>\n The work since 2017 has paid off, with one result that Radcliffe is proud of \u2013 an order book of \u00a31.6bn \u201cgives rise to real confidence for the future\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":" Focusing on regional work has paid off for Esh Group, according to its chief executive. In an exclusive interview with Construction News, group chief executive Andy Radcliffe said that targeting contracts in the North East had delivered strong financial results and secured future business. Radcliffe spoke\u00a0after announcing the firm\u2019s results for 2023, which included a …<\/p>\n","protected":false},"author":149995,"featured_media":503594,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[547,570,559,57171],"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\nCloser to home<\/h3>\n
New friends<\/h3>\n
Image change<\/h3>\n
Downsizing<\/h3>\n