CG Fry profit rises amid high demand for contracting services

Pre-tax profit has risen by 18 per cent at Dorset builder CG Fry & Son on the back of a bumper increase in turnover in its contracting arm.

The Dorchester-based company, which operates as both a contractor and residential developer, said a strong financial and operational performance last year had left it well positioned for further growth, despite the challenge posed by construction cost inflation.

Profit before tax stood at £12.4m, up from £10.5m the year before, according to the company’s newly published annual report and financial statements for the year ending 31 December 2024.

Turnover surged from £98.6m to £122.6m over the period. Within that total, the contracting division turned over £41m – a 57 per cent increase on the previous year.

“Demand for the company’s contracting services remained strong in 2024, reflecting its reputation for delivering high-quality, cost-effective work ranging from large-scale commercial projects to small-scale residential works,” the directors said in a strategic report accompanying the financial results.

“A healthy pipeline of tenders and new opportunities bodes well for the future.”

Last September, CG Fry was one of 22 firms to win a place on an £800m modern methods of construction framework led by Procurement for Housing and an alliance of housing associations backed by the National Housing Federation.

Turnover in CG Fry’s larger development division grew 13 per cent to £82m, fuelled by an increase in private completions and staged payments from affordable housing providers.

“Despite broader economic challenges affecting the wider housing market, the company succeeded in growing turnover while protecting profit margins,” the directors said.

“With net assets exceeding £100m […] the company is in a very strong position to navigate market cycles and take advantage of opportunities.”

The firm had cash at hand of £270,911 at the end of last year, up from £249,970 in 2023.

CG Fry began this year free of short-term bank debt, having owed £4m at the start of 2024, although it holds a £35m revolving credit facility with Lloyds Bank.

The firm paid out £1.4m in dividends last year, up from £310,000 in 2023.

Its average monthly headcount rose from 199 to 205 employees, and the annual wage bill increased from £10.8m to £12m.

Best known for its work on the Poundbury development in Dorchester, CG Fry is currently awaiting the outcome of its appeal to the Supreme Court in a long-running dispute over nutrient neutrality rules.

The case will test whether the rules apply in cases where planning consent was granted to a development before the introduction of Natural England’s guidance on the issue.