黑洞社区

Rankings and turnover: risers and fallers*

Biggest risers in the table

Company	Main activities	Latest rank	Previous rank	Increase (places)
Gratte Brothers	M&E contractor	103	144	41
Abbey Developments	Housebuilder	82	122	40
Galliard	Housebuilder and commercial developer	96	130	34
SDC Builders	黑洞社区 contractor, mainly in education and industrial	100	132	32
Henmead	Contracting, property, FM	98	127	29

Purely in terms of Top 150 ranking places, Gratte Brothers was this year鈥檚 fastest riser, jumping 41 places up the table this year from 144th to 103rd. The London-based M&E contractor increased its income by three-quarters, from 拢124.6m to 拢219.6m. The company, which said it exceeded revenue growth expectations in the year, attributed the increase to 鈥減hasing of projects under way in the prior year as well as notable successes in technology works鈥�.

Galliard rose 34 places to enter the top 100, in 96th place. The housebuilder in its accounts cited several factors behind its 40% growth in revenue. It said its construction activity in the year was greater than in the previous year and it generated more income from outside the group. It also said that while it completed fewer homes, the units sold were for higher revenue and it received a higher share of joint ventures building homes. Galliard did, however, make a pre-tax loss of 拢11.3m in the year, which it put down to fluctuations caused by the group鈥檚 varied activity.

SDC Builders and Henmead complete the top five risers, jumping 32 and 29 places respectively.

Looking at the top of the table, Balfour Beatty retained its position as number one. Several other big names jumped a few places up the rankings, with Mitie and Laing O鈥橰ourke rising two places to second and four places to third respectively.

The biggest fall in the rankings belongs to Scottish contractor and housebuilder Cruden, which dropped 48 places to 96th. It said in its accounts that the drop in turnover was due to its decision to concentrate on land-led opportunities and partnership working and to reduce its reliance on competitively tendered projects.

Other big fallers include Telford Homes (which dropped 42 places to 86th) and contractor TSL (28 places to 55th). The latter said its turnover drop was due to focusing on contracts with 鈥渕argin growth鈥� as opposed to pure turnover growth.

Five biggest rises in turnover (拢k)

Company	Main activities	Latest (拢k)	Previous (拢k)	Increase (拢k)	(% change)
Vistry Group	Housebuilding partnerships	4,042,100	3,115,100	927,000	30%
Laing O鈥橰ourke	Contracting and associated business	4,327,400	3,604,700	722,700	20%
Balfour Beatty Group	Contracting, PFI/PPP, support sevices (FM)	9,595,000	8,931,000	664,000	7%
Kier Group	Contracting, FM, property development.	3,969,400	3,405,400	564,000	17%
Morgan Sindall	Contracting, fit-out, development, public housing R&M	4,117,700	3,612,000	505,700	14%

Five biggest rises in turnover (%)*

Company	Main activities	Latest (拢k)	Previous (拢k)	Increase (拢k)	(% change)
Curo Construction	Commerical new-build/fit-out	158,810	76,959	81,851	106
Gratte Brothers	M&E contractor	219,642	124,636	95,006	76
Reds10	Modular construction specialists	142,533	83,788	58,745	70
Abbey Developments	Housebuilder	296,736	175,188	121,548	69
JN Bentley	Civil engineering and construction company	388,340	263,469	124,871	47

*excludes Hill Holdings because its reporting period changed year on year

Few housebuilders have garnered as many column inches in the past couple of years as Vistry. And the company, which has pivoted towards a partnerships model 鈥� in which a housebuilder works to build homes for long-term investors including affordable housing providers, often through large portfolio deals 鈥� posted the largest increase in revenue in terms of monetary amount.

It increased its revenue by nearly 拢1bn in 2022/23. The 30% rise from 拢3.1bn to 拢4bn came on the back of what Vistry described as 鈥渞obust demand鈥� from registered providers. The housebuilder 鈥� which is on track to unseat Barratt as the biggest builder in terms of volume this year 鈥� has, however, recently issued two profit warnings following build cost underestimates, but has also said its forward order book has increased.

Another firm that has had issues with losses in recent years is Laing O鈥橰ourke. The company not only returned to profit in the year to 31 March 2024, it also increased its turnover by 拢722.7m and increased its order book from 拢6.6bn to 拢7.6bn. It said this high level was partly driven by its work as a strategic supplier to government on hospitals and infrastructure.

Balfour Beatty posted strong growth of 拢664m, followed by Kier (拢564m) and Morgan Sindall (拢506m). An honourable mention should go to Mace, which increased its earnings by 拢464m (25%) to 拢2.4bn with 60 projects won in the year to December 2023.

When it comes to the highest percentage growth, Curo Construction came out top, doubling its turnover from 拢77m to 拢158.9m in the year to 30 September 2023. The contractor, which operates primarily in London and the South-east, said in June that it had already secured projects for 拢100m of turnover for the latest financial year.

Offsite specialist Reds10 increased its revenue by 70%, from 拢83.8m to 拢142.5m for the year to March 2024. In its accounts it said the growth was due to a combination of new business and increased turnover with existing clients, and it forecasts revenue to be around 拢150m in the current year.

JN Bentley, a Mott MacDonald-owned civil engineering construction firm that mainly operates in the water industry, increased its turnover by 47% to 拢388.3m, citing a 鈥渟ignificant amount of work鈥� released late in the Asset Management Plan cycle.

Fallers

When it comes to those posting the largest drops in turnover, the lack of activity in the housing market over the past few years really comes to the fore.

The largest drops in monetary terms are Barratt, which saw a drop in turnover of 拢1.2bn, followed by fellow housebuilders Persimmon (拢1产苍), Bellway (拢1产苍), and Taylor Wimpey (拢685m) in second, third and fourth place respectively. Crest Nicholson, which entered advanced merger talks with Bellway in the summer, was eight on the list with a drop of 拢256m.

Since the accounts were published Barratt has merged with Redrow, while Taylor Wimpey last month said its order book has increased from 拢1.9bn to 拢2.2bn year-on-year.

Jason Honeyman, chief executive of Bellway, said: 鈥淎gainst an improving backdrop, the combination of our strong landbank, healthy forward order book and work-in-progress position provides Bellway with an excellent platform to build on its proven track record of organic volume growth in the current financial year and beyond.鈥�

Sector-specific activity

Five biggest increases in housebuilder turnover (%)*

Company	Latest (拢k)	Previous	Change (拢k)	Change (%)
Abbey Developments	296,736	175,188	121,548	69
Galliard Homes	234,490	167,120	67,370	40
Chartway	157,421	115,508	41,913	36
Vistry Group	4,042,100	3,115,100	927,000	30
St Modwen Homes	371,354	312,802	58,552	19

Five biggest increases in housebuilder turnover (拢k)*

Company	Latest (拢k)	Previous	Change (拢k)	Change (%)
Vistry Group	4,042,100	3,115,100	927,000	30
Abbey Developments	296,736	175,188	121,548	69
Keepmoat Homes	864,600	778,100	86,500	11
Galliard	234,490	167,120	67,370	40
St Modwen Homes	371,354	312,802	58,552	19

*excludes Hill Holdings because its reporting period had changed 

Five biggest increases in contractor turnover (%)

Company	Latest (拢k)	Previous	Change (拢k)	Change (%)
Curo Construction	158,810	76,959	81,851	106
Gratte Brothers	219,642	124,636	95,006	76
Reds10	142,533	83,788	58,745	70
JN Bentley	388,340	263,469	124,871	47
Jones Ruthin	166,053	113,708	52,345	46

   Five biggest increases in contractor turnover (拢k)

	Latest	Previous	Change (拢k)	Change (%)
Laing O鈥橰ourke	4,327,400	3,604,700	722,700	20
Balfour Beatty Group	9,595,000	8,931,000	664,000	7
Kier Group	3,969,400	3,405,400	564,000	17
Morgan Sindall	4,117,700	3,612,000	505,700	14
Mace	2,356,792	1,892,583	464,209	25

Newcomers

The following firms were in this year鈥檚 top 150 but were not in last year鈥檚:

Newcomers	Position
Curo Construction	130
Reds10	140
Jones Ruthin	126
John F Hunt	134
Van Oord	136
Chartway	132
Tilbury Douglas	52
Speller Metcalfe	143
Collins	138
Robertson Residential	133

Profit: risers and fallers

When looking at the firms that have improved profitability there are various ways one might look at it.

The simplest is to look at the improvement, in monetary value, in the profit and loss account. This year, of the firms with the five biggest increases in the profit and loss account, three still posted a loss.

Five biggest increases to profit and loss account (拢)

Company	Latest (拢k)	Previous (拢k)	Change (拢k)	Change (%)
Laing O鈥橰ourke	18,100	-288,100	306,200	106
Telford Homes	-39,914	-192,615	152,701	79
Tilbury Douglas	5824	-93,981	99,805	106
Equans Regeneration	-38,897	-135,651	96,754	71
Lend Lease Europe	-134,269	-230,393	96,124	42

The biggest positive gain was Laing O鈥橰ourke, which moved from a huge loss of 拢288.1m in 2023 to an annual profit of 拢18.1m this year.

The contractor had previously run into problems on several high-profile jobs and has increasingly moved into negotiated jobs such as frameworks and public sector deals rather than single-stage, lump sum work. It has also tightened overheads.

Telford Homes made a loss of 39.9m for the year to December 2023, but this was 拢152m better off than the 拢192.6m loss it made the previous year, as the housebuilder battled building safety costs and coped with expenditure relating to the delayed refurbishment of the grade-II* listed Balfron Tower in east London.

Equans Regeneration and Lend Lease Europe both improved their position but remained in loss, whereas Tilbury Douglas inched back into the black by 拢5.8m.

However, excluding companies that were loss-making in either of the past two years (in other words, looking solely at profitable companies that have increased the amount they made year-on-year) enables us to identify other companies that have posted strong growth.

Five biggest increases in pre-tax profit (拢k)*

Company	Latest (拢k)	Previous (拢k)	Change (拢k)	Change (%)
Keller	125,600	56,300	69,300	123
Morgan Sindall	143,900	85,500	58,400	68
Mitie	156,300	105,500	50,800	48
Mace	61,674	36,667	25,007	68
J Murphy	66,836	44,576	22,260	50

*excludes contractors that made a loss in either year

Ground engineering firm Keller increased its pre-tax profit by 拢69.3m to 拢125.6m, while Morgan Sindall increased its profit by 拢58.4m to 拢143.9m. The latter saw its fit-out, construction and infrastructure divisions all increase profit and turnover.

Five biggest increases in pre-tax profit (%)*

Company	Latest (拢k)	Previous (拢k)	Change (拢k)	Change (%)
Speller Metcalfe	1,055	274	781	285
Galliford Try	30,900	10,100	20,800	206
Multiplex	31,048	11,066	19,982	181
Glencar Construction	2,182	809	1,373	170
Mount Anvil	16,913	6,291	10,622	169

*excludes contractors who made a loss in either year

When it comes to percentage increases in pre-tax profit, family-owned Speller Metcalfe topped the list, increasing its pre-tax profit from 拢273,000 to more than 拢1m. The firm, which operates in a number of sectors, said it focuses on frameworks and identifying clients with multiple opportunities to 鈥渃reate a sustainable pipeline鈥� of work.

Galliford Try tripled its annual pre-tax profit from 拢10.1m to 拢30.9m, which it said reflected 鈥渙rganic and acquisitive growth鈥�.

The company won work worth 拢889m in the year to 30 June 2024 and in November 2023 acquired mechanical and electrical engineering specialist ACRS systems for 拢4.5m.

Other firms reporting strong percentage growth in pre-tax profit include Multiplex (181% growth), Glencar Construction (170%) and housebuilder Mount Anvil (169%).

Fallers

The biggest percentage drop in pre-tax profit was Fairview which made a loss of 拢27.6m in the year to December 2023, compared with a profit of 拢940,000 the previous year. The housebuilder鈥檚 income dropped 30% year-on-year and it also had to set aside 拢26.3m bill on fire safety remediation works relating to legacy projects.

McAlpine (filed as Newarthill) made a pre-tax loss of 拢102.6m in the year to October 2023, compared with a 拢4.8m profit the year before. The firm blamed four problem jobs and restructuring costs. Leighton More, chief financial offer, said in the summer: 鈥淭he company had four contracts where the financial position was reassessed in the year and write downs made. The underlying causes were in the main due to the performance of our supply chain partners and the delivery of legacy projects in sectors which no longer fit our strategic direction.鈥� Cladding firm Permasteelisa made a loss of 拢11.1m, compared with a 拢994,000 profit the previous year. It said 鈥渋ncreased execution costs for some complex projects in the UK have led to a reduction in margins鈥�.

The largest fallers in monetary terms were again the large housebuilders, Persimmon (a decrease of 拢660.5m), Barratt (拢534.6尘), Taylor Wimpey (拢354.1m) and Bellway (拢299.3尘).

Sector-specific activity

Five biggest increases in housing operating profit (%)*

Company	Latest (拢k)	Previous (拢k)	Change (拢k)	Change (%)
Mount Anvil	18,481	6,617	11,864	179
Chartway Group	16,488	8,611	7,877	91
Castle Green Homes	12,207	6,613	5,594	85
McTaggart Group	4,882	2,961	1,921	65
Springfield Properties	17,010	15,698	1,312	8

*excludes housebuilders who made a loss in either year

Five biggest increases in housing operating profit (拢k)

Company	Latest (拢k)	Previous (拢k)	Change (拢k)
Telford Homes	-39,158	-191,230	152,072
Vistry	487,900	451,100	36,800
Mount Anvil	18,481	6,617	11,864
Chartway Group	16,488	8,611	7,877
Castle Green Homes	12,207	6,613	5,594

Five biggest increases in contracting operating profit (%)*

Company	Latest (拢k)	Previous (拢k)	Change (拢k)	Change (%)
JN Bentley	6,478	1,113	5,365	482
M Lambe Construction	6,094	1,729	4,365	252
Curo Construction	4,457	1,837	2,620	143
Novus Property Solutions	1,600	774	826	107
Caddick Group	4,137	2,139	1998	93

*excludes contractors who made a loss in either year

Five biggest increases in contracting operating profit 拢k

Company	Latest (拢k)	Previous (拢k)	Change (拢k)
Laing O鈥橰ourke	39,700	-78,800	118,500
Equans Regeneration	-35,987	-113,092	77,105
Keller	153,600	108,600	45,000
J Murphy Group	71,732	45,657	26,075
Carter	10,359	-5,096	15,455

 

Margins

The largest pre-tax margin increase belonged to Telford Homes. 

Other firms to substantially increase their pre-tax margin position include Tilbury Douglas,  which improved its margin by 24.3 percentage points after receiving a 拢7.4m tax credit. 

Seddon Group and Erith  also both moved their pre-tax margin into positive territory.

Company	Latest (拢k)	Previous (拢k)	Change (% point)
Telford Homes	-24.2	-65	40.8
Tilbury Douglas	1.1	-23.2	24.3
Seddon Group	2.8	-9.2	12
Equans Regeneration	-4.3	-14.6	10.4
Erith	2.3	-6.6	8.9

The fims with the largest decrease in pre-tax margin by percentage point were Nyetimber Finco (formerly Network Plus), which saw its margin decrease from 4.4 to -16.9, and housebuilder London Square, which decreased from 7.9 to -11.2. The latter cited inflation and interest rate volatility, along with uncertainty around planning and building regulation as impacting the business.