Esh Group’s concentrated efforts in the North East have led to financial stability and future security, asserts CEO Andy Radcliffe.
- The company reported a significant rise in pre-tax profits, demonstrating the impact of its regional strategy.
- Esh Group has improved liquidity without relying on its credit line, reflecting robust financial health.
- The firm’s focus on local employment and procurement has strengthened its supply chain and regional ties.
- Efforts to reshape the construction industry’s image and address the skills crisis are central to Esh’s long-term vision.
Esh Group’s commitment to the North East is yielding substantial rewards, according to its chief executive, Andy Radcliffe. Focusing on regional projects has not only ensured strong financial outcomes, including a rise in pre-tax profits to £3.1m from the previous year’s £2m, but has also secured future prospects for the firm.
Maintaining a steady turnover of £261m, the company has improved its liquidity position, boosting it by £4m to £23m, thus eliminating the need to draw on its £6m credit line. Radcliffe attributes these successes to a strategic emphasis on balance sheets and profit and loss accounts, supported by a skilled team. He remarks that reduced financial strain has enabled prompt payments to the supply chain, fostering loyalty and competitive pricing.
With the head office located in Durham, Esh Group leverages its geographical position to attract investment, particularly in infrastructure projects around Newcastle. Radcliffe acknowledges Tees Valley mayor, Lord Ben Houchen, as a pivotal figure in this growth, highlighting the abundance of projects requiring extensive infrastructure.
An integral part of Esh Group’s strategy is its focus on local resources, aiming to employ and procure locally. Radcliffe emphasises this approach as a crucial factor in the company’s operations. Additionally, he stresses the need for a transformation in the industry’s image to combat the skills shortage, advocating for a shift away from traditional perceptions of construction work.
To address this, Esh is collaborating with educational institutions in Yorkshire and the North East, focusing on skills relevant to digital transformation, data, and AI, while engaging with academies to conduct skills initiatives including mock interviews. Furthermore, the company runs primary school programmes aimed at altering gender perceptions from an early age, which Radcliffe considers profoundly influential.
The firm’s success is built on a rationalisation programme started in 2019, consolidating 26 business units into five core activities. This strategic adjustment prepared Esh for post-Covid inflationary pressures and stabilised its business model. As Radcliffe explains, overexposure to multiple industry segments previously led to inconsistent growth, whereas their current focus on recession-proof utilities, civil engineering, and housing projects provides resilience.
Radcliffe confidently states that an order book valued at £1.6bn serves as a robust indicator of future confidence, underscoring the effectiveness of Esh Group’s astute regional strategy.
Esh Group’s regional focus and strategic adaptations have proved instrumental in its financial and operational success.
