Red Construction Group has posted a record revenue of £114.8m for the year ending 31 March 2024, an 85 per cent rise on the previous year’s figure of £62.1m.
Pre-tax profit for the year increased to £2m, up from £1.1m in fiscal year 2023.
The company attributed its performance to successful project delivery on schemes worth under £50m across its core markets, including commercial, residential and hotel sectors.
Notable completions during the year included schemes at Legoland Windsor for Merlin Entertainments, 80 New Bond Street for Hines, and Grosvenor Gardens for Grosvenor Estate.
Red Construction chief executive Graham Sturge said: “Twelve months ago, we predicted 2023/24 would be a huge milestone for the business, and I’m proud that we’ve met that and more, with a turnover comfortably over the £100m mark for the first time.
“We’ve also sustained a robust profit margin – an important element of the stable, considered growth we want to achieve year on year.”
Sturge added that the firm was “conscious of the volatility of our market” and would maintain a focus on risk management, stable growth and support for its supply chain partners.
The group declared a dividend of £251,000 during the year and maintained a strong cash position, financing operations without the need for external funding. Cash and cash equivalents rose from £5.1m in the previous year to £9.6m.
Looking ahead, the group forecasted revenues of more than £130m for FY25, underpinned by a “strong” order book and a pipeline of secured and anticipated projects.
Red Construction said its performance was supported by strategic initiatives aimed at broadening its market reach and operational efficiency.
The launch of the firm’s special projects division, which focuses on structural alterations and refurbishment contracts up to £10m in value, has allowed it to address niche opportunities in urban areas and on restricted sites.
The group also strengthened its regional operations, with its South West division continuing to expand its footprint in Bristol and the surrounding areas.
The group acknowledged ongoing risks associated with inflationary pressures, supply chain disruptions and credit risks, emphasising a focus on maintaining financial discipline, including stringent working capital management and rigorous tender review processes to reduce risk.
In an interview with Construction News earlier this year, Sturge (pictured) said the firm was happy to stick mainly with medium-sized projects.
“We try and aim to have a maximum of two jobs that we regard as big jobs,” he said.
“If something goes wrong on a £40m job rather than a £20m job, it’s twice the problem. On the margin recovery, it’s a small percentage. So the risk versus return isn’t quite there to go big and bigger.”
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Colin Marrs