A CONSTRUCTION firm will “turn up the dial” on expansion plans with a technology drive aimed at providing breathing space to cultivate growth, its boss has told The Northern Echo.

Esh Group says a major IT overhaul and operational restructure, coupled with the strengthening of its County Durham headquarters, will lay the foundations for the next phase of its evolution.

The business operates across a number of sectors, including construction, civil engineering and housing, and has enjoyed significant success in recent years, with contracts matched by expansion into new geographical territories such as Cumbria and Scotland.

However, bosses say that progress has, to an extent, stretched its operational model, with its IT revamp aimed at preparing the company for fresh growth after a period of consolidation in 2016 following the Brexit vote and some issues around social housing.

But Andy Radcliffe, chief executive, said the group, which runs its head office out of Bowburn, near Durham City, was well placed to pick up the pace again, saying a deliberate decision to ease turnover to implement IT changes would bear fruit in the longer term.

According to latest annual financial results, released today, turnover for the year ended December 31 was £242.7m, which was down from £275.5m in the previous 12 months, while pre-tax profit also fell from £8.6m in 2015 to £3.8m.

However, Mr Radcliffe said he was unfazed.

He told the Echo: “We took the decision at the back end of 2015, largely on the back of stellar turnover growth, to overhaul operational systems.

“They had, in some respects, been home-grown and we had started to stretch the operating model.

“We needed to give ourselves some breathing space and we took the decision to dial down the turnover to get that.

“But it isn’t the old adage of taking a CD off the shelf and putting it in; we have worked hard on this (and once the system is in), we’ll be ready to turn up the dial.

“Once we are on the treadmill and winning work, we can grow quite quickly.”

Mr Radcliffe said the group hopes to begin implementing its new IT structure in back office operations towards the end of 2017, and said it would be a crucial foil as the company looks to grow in somewhat uncertain times.

He also confirmed such expansion would be led out of its North- East heartland, where the business has extended its headquarters with extra office space and built new facilities to house a training academy aimed at continuing its commitment to develop the staff of tomorrow.

He said: “We did see some inevitable reaction from Brexit and there is still quite a bit of uncertainty, but I think it’s fair to say it has not been as bad as we thought it would be and social housing is improving too.

“Brexit is Brexit and the economy is the economy; it is what it is.

“We are focusing on what we can do and that is growing the business.

“We have got really good opportunities and will preserve our strong position in the North-East; we have invested in our headquarters and the training academy, so it’s our mothership as it were.

“We are a steady growth business and have the ingredients to improve.

“We don’t have dramatic plans to take over the world, but we have a good platform and want to leverage that.”

Mr Radcliffe also paid tribute to Brian Manning, Esh’s former chief executive, who passed away earlier this year following a short cancer battle.

Mr Manning, a keen supporter of the local skills agenda, was instrumental in the formation of Esh Holdings in 1999, the precursor to the Esh Group, and, in 2003, when the business outgrew its Esh Winning base, he oversaw its move to Bowburn.

“Brian leaves a tremendous legacy”, added Mr Radcliffe.

“Our job is to continue that for him and we are doing what he trained us all to do.

“We have a good strategy going forward and hope to do him proud.”