Esh Group has reported an increase in profit and liquidity for 2025, marking the strongest financial performance in the company’s history.
The North of England contractor saw pre-tax profits rise to £15 million, up from £5 million in the previous year, with a 4.8% pre-tax margin. Turnover grew by 17% to £311 million.
Strong demand from Esh’s core markets coupled with its disciplined approach to contract selection, risk management and quality delivery has enabled the Group to deliver record profitability in a controlled and sustainable manner, according to Chief Executive Andy Radcliffe.
He said: “Following the successful execution of a strategic transformation undertaken over recent years and the closing out of legacy contracts during 2024, the Group entered 2025 from a position of increasing strength. And as expected, demand within our core operating segments remained resilient, driving a significant increase in turnover, with both our housing and infrastructure divisions delivering strong performances.
“This, underpinned by our guiding principles of securing work with the right client, at the right price and under the right contract, has heavily contributed to our record year, enabling us to deliver profitable growth and strengthen our market position.
“The level of profitability achieved is more appropriate for a business operating on our scale and in our chosen market segments. We are back to where we should be.”
The firm’s portfolio centres on work for local authorities, utility and environmental companies, registered affordable housing providers, as well as the private housing sector.
Throughout the year, Esh continued to expand across Yorkshire and the Humber, securing its place on YORhub’s civil engineering major works framework for the first time, and has further developed its land-led housing delivery model. Within the North East, Esh renewed its place as a primary supplier on the North East Procurement Organisation’s (NEPO) civil engineering and infrastructure framework.
“Our strategic focus on key, long-term frameworks, alongside maintaining our status as a trusted delivery partner has created a strong foundation for sustainable growth during the year. It has also delivered stronger pipeline certainty, providing more than £2 billion of visibility within our forward order book over the next 10 years,” explained Radcliffe.
Turnover was up by £46 million from £264 million in 2024, with gross profit margins increasing to 10.7%. The privately-owned contractor achieved its highest ever cash balance, with liquidity exceeding £58 million, after making its largest ever annual investment in plant, machinery and vehicles, as well as technology and operational systems to support continued business improvement.
Radcliffe added: “Our prudent approach to working capital and cash management, and disciplined commercial controls, has seen us strengthen our liquidity position year-on-year - giving the Group significant resilience and flexibility to support future growth opportunities. Our investment in plant and machinery has enabled us to improve operational efficiency and self-delivery capability whilst importantly, enhancing the service we can deliver to our clients.”
Having anchored its position as a key delivery partner across various frameworks for Northumbrian Water Group throughout the AMP 8 programme, Esh has experienced significant growth in the wastewater and environmental sector.
Its infrastructure division has reached the halfway point in the landmark restoration of the Tyne Bridge and has recently handed over Stockton Waterfront urban park, marking the completion of one of the North East’s most significant regeneration schemes. The £23 million transformation has reshaped the town centre, reconnecting Stockton High Street with the River Tees through an expansive, multi-functional urban park - showcasing Esh’s capability to deliver major infrastructure.
While within its housing division, Esh is set to deliver almost 2,000 new affordable homes for registered providers across the North East and Yorkshire, helping to support the urgent need for social housing.
The 900-strong contractor continues to place social, economic and environmental impact at the centre of business delivery, and, with social value having long been embedded into its core business processes, generated £32.6 million in economic value and achieved a 19% Social Return on Investment (SROI) in 2025 aggregated across all schemes.
Radcliffe concluded: “Looking ahead, visibility of our future workload remains exceptionally strong, supported by long-term framework agreements and mutually beneficial, collaborative relationships with our valued clients and trusted supply chain partners, for whom we remain extremely grateful. We continue to actively pursue additional opportunities within our core markets and are poised for another successful year.
“2025’s performance is clear evidence that our strategically designed business model has given the Group solid foundations for sustainable long-term growth. This success though, is built on the strength of our people, who work exceptionally hard to delight our clients and live our values each day. I am immensely proud of what they have, and continue to achieve.”