Latest accounts from London-based Red Construction Group show a 4% slide in turnover to £62.1m for the year to 31st March 2023 (2022: £64.7m) and a 25% decline in pre-tax profit to £1.1m (2022: £1.5m).
However, with two months of the current financial year still to go, the directors are expecting turnover to be around £100m this year, a 60% increase over a single year.
The group has already secured £100m in contracts for the current financial year, with expectation of this rising further, and including significant growth for the southwest division – which launched in late 2021 – going from returns of £12m in FY23 to a predicted £35m in FY24.
Red Special Projects, created to deliver on schemes valued between £2m and £10m, will itself turnover more than £25m in the current financial year, while across the group, staff numbers have risen from 132 in April 2023 to nearly 200 today.
Chief executive and co-owner Graham Sturge said: “The focus of the last financial year was to stabilise the business, while investing in key areas that would enable us to grow in the future. I’m delighted to say we have achieved both and are already seeing the benefits of it. The past two years have been challenging, with a volatile construction market and many businesses suffering along the way. In spite of this, we laid the foundations for growth, have doubled our team size and are contracted on projects that will guarantee us a more than 60% revenue uplift. With a record year already on the horizon, we’ll continue to push what RED Construction has built its reputation on: creating long-lasting relationships, channelling real enthusiasm for the work, and delivering great schemes our people and our clients are proud of.”