HG, a Hertfordshire-based contractor, has achieved notable financial success by significantly increasing its turnover. Despite economic disruptions and reduced profits, HG’s strategic efforts have led to a turnover boost, reaching £424m. The company tackled challenges by improving its internal delivery model. Expansion across major cities has contributed to a promising pipeline. A stabilising economic climate fuels optimism for 2024.
HG, a prominent contractor from Hertfordshire, has remarkably increased its turnover to £424m for the year ending 31 December 2023, a substantial rise from £335m in the previous year. This achievement comes amidst a backdrop of economic upheaval both domestically and globally, which Chairman Christopher Benham described as a ‘maelstrom’. His statement highlighted significant challenges stemming from legacy contracts, which have now concluded, offering some relief.
While the turnover experienced a positive upswing, the firm’s pre-tax profit saw a decline, dropping to £6.4m from £15.3m in 2022. Benham attributed this to unprecedented operating conditions, stating they were the harshest the company has ever faced. High and unforeseen inflation led to budget overruns, compounded by failures in the supply chain, which presented significant obstacles.
To navigate these challenges, HG leveraged its internal delivery model, which proved vital in maintaining financial stability. Collaborations with suppliers to pre-emptively secure manufacturing commitments and manage long lead times were crucial strategies. Where possible, offsite storage facilities were adopted to mitigate potential delivery issues. The company’s vigilant monitoring of material and labour availability further enhanced its resilience.
HG’s geographical expansion has also been instrumental in its recent success, with increased operations in cities such as Leeds, Manchester, and Bristol. This expansion has bolstered its project pipeline, which currently stands at approximately £500m. Noteworthy projects include a 37-storey student accommodation in Manchester and a £69m residential scheme in Leeds, both contributing to the company’s robust outlook.
Looking forward, HG expresses confidence in a ‘bright outlook’ for the forthcoming year, bolstered by stable inflation and continued business growth in both public and private sectors. This optimistic forecast reflects the firm’s readiness to adapt to and navigate evolving economic conditions, as articulated by Benham, who underscores the company’s proactive stance in embracing regulatory changes.
In summary, HG’s strategic adaptations and expansion efforts have positioned it favourably despite the challenging economic landscape, with a positive outlook for the future.
