Esh Group has reported a £3.7 million loss in 2020 after being hit by the pandemic.
The construction firm, which trades across the North of England and Yorkshire, saw turnover for the full year increase to £223 million after organisational changes and a revised growth strategy. But any growth was offset in part by the dramatic and sudden onset of restrictions due to the global pandemic.
It is estimated that the impact of the pandemic had a net effect on the bottom line of more than £6 million - equivalent to a 2.6% loss of gross profit.
The Group’s chief executive, Andy Radcliffe, said that although the challenges of the pandemic are far from over, the company has entered 2021 with a solid foundation for growth in both liquidity and profitability.
“We commenced the year with a record order book approaching £300 million, a level of liquidity not seen in many years, and a business strategy that on all measures is performing well. The Group has recorded strong profitability through to the end of quarter three, and the board expect this to continue for the remainder of the year and beyond,” he said.
The COVID-19 site shutdown period, cost of remobilising and overall reduction in productivity owing to periods of self-isolation, had a significant impact on the Group’s 2020 results. Gross profit margins fell to 2.4% from a comparable 4% the previous year.
Despite these pressures, net cash generated through operating activities was £4.7million, due largely to a significant improvement in working capital management throughout the business.
The privately-owned firm ended the year with £15.4 million in liquid cash and navigated the most challenging year in its history without drawing at any point on its £7 million credit facility.
Whilst continuing to battle the chronic levels of materials shortages and cost inflation the Group is realigned to be simpler, leaner and focussed on segments of the market that continue to show incredible resilience.
Radcliffe added: “The challenges faced from COVID-19 have inevitably impacted our results in 2020 and dampened our growth plans. However, to start this year with a record order book, being highly profitable in the year to date, and debt free, is a huge feat which has been achieved through a highly experienced leadership team and combined effort from all of our colleagues. We are re-positioned and re-focussed for success in a vibrant marketplace.
“As always, we are incredibly grateful to our clients, suppliers and wider stakeholders for their understanding and unwavering support. I am immensely proud of what we have all achieved over the past few years.”
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