Despite a drop in profits, an Ipswich-based construction firm remains confident due to its strategic resilience.
- The civil engineering contractor’s profit fell from £7m to £5.5m, yet turnover rose from £164.5m to £166.8m.
- The company’s project diversity in sectors like education and infrastructure safeguards it from market over-reliance.
- Key strengths include a wide client base and strategic growth in freight volumes and warehousing.
- Despite increased bank overdrafts, One Group’s standing on the CN100 list has improved.
One Group Construction, a specialist civil engineering contractor based in Ipswich, reported a decline in pre-tax profit for the year ending 31 December 2023, decreasing from £7 million to £5.5 million. The firm, however, expressed satisfaction with its results, citing its strong business resilience. Importantly, the turnover increased marginally from £164.5 million to £166.8 million, which the company described as a positive outcome despite the profit dip.
In detailing its strategic positioning, the company emphasised sector diversity as a key element of its resilience. By engaging in varied projects such as educational institutions and highway infrastructure, One Group avoids over-commitment to any single market sector. This broad client base, according to the firm’s statements, plays a crucial role in achieving consolidated strong results year over year.
Looking ahead, One Group anticipates further strengthening its position through the growth of freight volumes and the expansion of its warehousing facilities. These elements are expected to contribute significantly to the firm’s robust strategic framework, enhancing its operational resilience in the construction and logistics sectors. Notably, the company operates as a holding entity for nine subsidiaries within these areas.
The financial review of One Group revealed that civil engineering constitutes approximately 65% of its overall operations, while the building and glazing sectors comprise 19% and 8%, respectively. The accounts also showed that the company had increased its bank overdrafts from £11.4 million at the end of 2022 to £11.9 million, with repayments due by the year’s end of 2024.
Despite the financial challenges, One Group Construction has improved its ranking on the CN100 list, moving from the 99th to the 97th position among the top 100 construction contractors in the UK. This advancement in ranking, facilitated by the increase in turnover, underscores the firm’s resilience and strategic capability in navigating market dynamics.
One Group Construction remains resilient and strategically positioned despite recent profit declines, as evidenced by its improved industry standing.
