Company says jobs worst affected by rises are now mostly complete
Hertfordshire contractor HG Construction saw turnover hit a record last year, in recently filed accounts at Companies House.
But pre-tax profit fell by more than half to 拢6m from 拢15m last time with the firm saying existing fixed-price jobs had been hit by rises as a result of increased materials and energy costs.
It said 2023 had been 鈥測et another challenging year of managing inflation across fixed-price contracts鈥�.
And it admitted that forecasting models and contractual mechanisms for managing risk had not been able to cope with the rise in costs.
But it said inflation had now peaked while the schemes that had been hit by escalating costs 鈥渁re now largely completed or in the final phases of construction鈥�.
Chief executive Adam Quinn said it would focus on the next phase of its strategic plan which included stabilising revenue and beefing up internal processes.
The company, which specialises in residential high-rise and student accommodation work for clients including Argent Related and Clarion, saw income in 2023 jump a quarter to 拢424m.
Based in Hitchin, HG added the amount of cash it had at the end of last year was down to 拢34m from 拢40m last time.
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