Neilcott Construction, an employee-owned firm, reported a substantial rise in its financial performance for 2023.
- The Kent-based contractor’s revenue increased from £100.3m to £138.9m, marking a 40% rise.
- Pre-tax profit saw a 12.7% increase, growing from £2.6m to £2.9m despite inflation challenges.
- Neilcott rewarded employees with £250,040 due to its financial success.
- The firm expanded its workforce and opened a new regional office to support its operations.
Neilcott Construction, which transitioned to an employee-owned trust in 2021, has reported a remarkable financial performance for the year 2023. The company’s revenue surged from £100.3 million to £138.9 million, representing a notable 40% increase. This growth in revenue has underlined the firm’s robust position in the market despite prevailing economic challenges.
The company’s pre-tax profit also experienced a growth of 12.7%, rising from £2.6 million to £2.9 million. The managing director, David Huxley, attributed this creditable performance to the company’s ability to manage inflationary challenges effectively throughout the year.
In light of its improved financial standing, Neilcott was able to distribute £250,040 among its employees, rewarding their contribution to the company’s success. This move reflects the firm’s commitment to its employee-owners and the benefit of its employee ownership model.
The company’s strategic advancements included a slight increase in its headcount from 152 to 159 employees and an annual wage bill increase of 4.5% to £13.7 million. Neilcott’s ongoing projects, which number 75 according to Glenigan data, highlight its active engagement in the construction sector.
Neilcott’s strategic report, presented by Huxley, mentions that the company’s turnover indicates only a small fraction of its potential in the market. The firm remains focused on maintaining flexibility and high delivery standards to navigate cyclical market trends.
In a move to bolster its operational capacity, Neilcott opened a new regional office in Hemel Hempstead, adding to its existing locations in Orpington and Winchester. This expansion is aimed at enhancing project execution efficiency in the North London and northern home counties.
Looking ahead to 2024, Huxley forecasts a stabilisation in the market with turnover levels akin to the previous year. He also anticipates a recovery in gross margins, accelerated by the firm’s transition to employee ownership. However, vigilance against trade risks remains paramount, particularly concerning the Suez Canal amidst geopolitical tensions.
Neilcott Construction’s strategic manoeuvring and financial resilience underscore its robust market position despite economic challenges.
