Company says jobs worst affected by rises are now mostly complete
Hertfordshire contractor HG Construction saw turnover hit a record last year, in recently filed accounts at Companies House.
But pre-tax profit fell by more than half to £6m from £15m last time with the firm saying existing fixed-price jobs had been hit by rises as a result of increased materials and energy costs.
It said 2023 had been “yet another challenging year of managing inflation across fixed-price contracts”.
And it admitted that forecasting models and contractual mechanisms for managing risk had not been able to cope with the rise in costs.
But it said inflation had now peaked while the schemes that had been hit by escalating costs “are now largely completed or in the final phases of construction”.
Chief executive Adam Quinn said it would focus on the next phase of its strategic plan which included stabilising revenue and beefing up internal processes.
The company, which specialises in residential high-rise and student accommodation work for clients including Argent Related and Clarion, saw income in 2023 jump a quarter to £424m.
Based in Hitchin, HG added the amount of cash it had at the end of last year was down to £34m from £40m last time.
No comments yet