BOSSES at Durham-based construction firm Esh Group have hailed a landmark year after announcing a jump in turnover of 31 per cent.

Company chairman Austin Donohue revealed record results to staff at an annual meeting yesterday.

Turnover for the group soared to £95m in 2004 - up nearly a third on the previous year.

Mr Donohoe said: "While we have continued to enjoy favourable market conditions, a step change in the performance of the business and a growth in confidence of its people are clear for all to see.

"The result has been outstanding growth for the group as each area of the business has delivered a strong performance."

During the year the group has shifted focus to its core businesses, selling off overseas interests, including in the US.

This saw underlying operational profit increase to 13.9 per cent in 2004 - up 11.2 per cent on the previous year.

The company operates an Employee Share Ownership Scheme, which allows workers to receive shares as part of a performance-related reward package.

Refinements to the scheme agreed at yesterday's meeting mean employees can now take out up to 20 per cent of their holding.

Chief Executive Brian Manning said: "I'm delighted that staff who have contributed to the success of the business are now seeing such meaningful financial returns on their investment and commitment."

The Esh Group, which provides construction services to public and private sector clients, was crowned North-East Company of the Year earlier this year.