Mike Hughes looks at the regional economy through the results of three key North East businesses to see how they have coped through a turbulent time

 

 

Esh

 

North of England construction firm, Esh Group, has reported a return to profitability for 2021 with a £9 million turnaround from the previous year’s results.

The Queen’s Award-winning company, which has undergone a comprehensive programme of simplifying and re-focusing business operations over the past four years, saw turnover increase to £255 million and posted an operating profit of £4 million. Turnover is up £32 million from the previous year, representing one of the most significant periods of growth in the firm’s history.

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The Group’s chief executive, Andy Radcliffe, said: “We are delighted to report a remarkable improvement in profitability, particularly during another year which was marred by the impact of the global pandemic.

“This achievement is no mean feat and is underpinned by the cumulative efforts over the last four years to reposition the group to target resilient sectors of the construction industry.”

The privately-owned firm ended 2021 with £21 million in liquid cash and remains debt free, without drawing on its £7 million credit facility at any point in the year. Gross profit margins climbed to 6.7% from a comparable 4.9% the previous year – the highest it has been in six years.

“While we continue to face headwinds, along with the wider industry, our focus on increasing turnover via routes to market which present reduced risk provides us with a stable footing on which to continue our growth plans,” Radcliffe added.

Nifco

 

TEESSIDE car parts manufacturer Nifco UK has posted £44.2m turnover in the face of challenging trading conditions in the automotive industry.

The Eaglescliffe-based company, which produces parts for some of the world’s largest carmakers, saw sales drop slightly for the 12 months ending December 31 2021, down from £47.5m in 2020. The reduction is largely down to the global shortage of semi-conductors.

Jim Casey, Managing Director at Nifco UK, said: “Despite an air of optimism from the output during Q1, the remainder of the year experienced further suppressed sales linked to a continuation of global supply chain issues that has plagued the entire global automotive industry. I’m proud of the way the team has responded and maintained focus on efficiency improvements, training and general continual improvement which has helped to offset much of the output reduction impact.

“The fundamentals of our business remain very strong and with the benefit of the efficiency improvements made over the last two years, we expect to reap huge rewards as business conditions improve.”

Malhotra

 

Leading North East care, leisure and property business Malhotra Group plc has unveiled its annual results for the year ended 31 March 2022.

Whilst the results continue to be partially impacted by the Covid pandemic, it has revealed it is in a strong trading position and is continuing its planned and extensive expansion programme across all sectors of the business.

The Group’s turnover for the year ended 31 March 2022 was £41.3m (2021: £30.9m) reflecting a 34 per cent increase on the previous year.

CEO Bunty Malhotra said: “Two of the sectors in which we operate were hardest by the pandemic and subsequent lockdowns; care and hospitality,” he said.

“Our performance in the year when Covid restrictions were ended but continued to impact our business is down to several factors; our experienced management team, the diversity of our assets, and our investment in quality.”

 

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