The construction arm of Bolton-based Seddon Group has bounced back into profit with a £2.3m pre-tax gain for 2024 after scraping just £0.2m the previous year.
The turnaround came despite construction turnover sliding 12% to £138m as delayed project starts and stricter job selection cut volumes.
But tighter governance and risk discipline helped restore construction operating margin to 1.5%, while group operating margin rose to 2.7% (2023: 1.9%).
At group level, pre-tax profit climbed a third to £6m on revenue of £144m (2023: £161m).
Property contributed £1.1m and developments £0.6m as higher build costs nibbled at scheme gains, while Circle Recycling contributed £0.3m and expanded with new kit and a management buy-in to 50% ownership.
Chief executive Jonathan Seddon said the construction recovery was underpinned by picking the right jobs and growing shorter-cycle divisions like housing maintenance and decarbonisation, with over 70% of the 2025 order book already locked in.
“These works operate with contracts of shorter duration, both delivery and pre-contract, and are therefore less affected by any procurement delays and cost inflation pressures that have been experienced on larger contracts.
“This supports the underlying strategy over the last five years to continue to grow these parts of the business such that they represent an increasingly higher proportion of our annual turnover.
“Additionally, we have continued to invest in the future of our Social Housing division, with a number of senior appointments made during the year across the key areas of operations and delivery, commercial and business development.”
Net cash ended the year at £9.3m, down from the prior year’s exceptional high of £20m after land and JV investment.
from Construction Enquirer https://ift.tt/YQKWejy