Hertfordshire-based contractor HG Construction has reported strong financial results for the year ending 31st December 2024, following the successful implementation of a corporate restructure and shift in strategic direction.
Despite a 9% reduction in turnover to £387m in 2024 (down from £424m in 2023), operating profit was up 55% to £9.2m (2023: £5.9m) and pre-tax profit was up 48% at £9.5m (2023: £6.4m).
The contract margin rose from 3.8% in 2023 to 5.4% in 2024.
Directors said that the numbers reflect the early success of the company’s renewed focus on operational stability and internal strengthening.
At the end of 2023, HG Construction announced a strategic pivot from its previous growth trajectory towards consolidation and internal improvement.
Chief executive Adam Quinn said: “The construction sector faced a year of change in 2024, as the introduction of major regulatory reforms created new challenges across the industry. We viewed this evolving environment as the ideal opportunity to strengthen our internal foundations to ensure that the business is well-positioned for sustainable delivery and continued excellence in project execution.
“As such 2024 was a pivotal year for HG as we transitioned into a new phase of our strategic business plan, and our revised strategy is already delivering results. We are pleased to report a solid turnover of £387m and a marked 30% increase in gross profit margin compared to 2023.
“I am incredibly proud of the results we have posted, and I would like to recognise our exceptional teams for their continued hard work and commitment. With a robust financial position and a healthy pipeline, 2025 promises to be another successful year for the business as we continue to work collaboratively with our valued client base on landmark projects throughout the UK.”
HG Construction is celebrating its 25th anniversary this year. The company was formed in 2000 following a management buyout of Hunting Gate, a Hitchin based contracting firm with a turnover of £27m at the time. Today the company delivers large scale, complex schemes across the UK, specialising in the student accommodation, residential, hotels, commercial and later living sectors. HG internally delivers key construction elements including M&E, cranes, concrete frames, piling, drylining, bathroom and utility pods.
Its clients include Avanton, Dominus, Elysian Residences, Greystar, HG Living, Harrison Street, L&Q, Manner, Meadow Residential, McLaren Property/Living, Metropolitan, Scape, Studio Hive, Southern Housing, Tribe Student Housing and Workspace.
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