High-rise specialist sees turnover hit record figure

Hertfordshire contractor HG Construction saw turnover hit a record last year, in recently filed accounts at Companies House.

But pre-tax profit fell a third to £15m with the firm saying existing fixed price jobs had been hit by rises as a result of increased materials and energy costs while it added several contracts had been hit by delays in awarding them.

It admitted: “Consequently, our margins have been reduced as we continue to support our supply chain, clients and deliver on contractual commitments.”

hg leeds

HG is working on this student accommodation block in Leeds for Scape

Chief executive Adam Quinn said it was ploughing more money into offsite and modular construction to ensure more certainty over the cost of schemes.

He added: “We continue to invest in our self-delivery capabilities which are instrumental in our successful management of costs and project risk. Having increased control over our supply chain sets us apart in the marketplace.”

The company, which specialises in residential high-rise and student accommodation work for clients including Argent Related and Clarion, saw income in 2022 jump 39% to £336m.

Based in Hitchin, HG, which has a London office in Gray’s Inn Road and employs 300 staff, added the amount of cash it had at the end of last year was down to £40m from £48m.

Among the schemes it is working on include a 32-storey student accommodation block in Leeds for Scape and a residential and commercial scheme on the Old Kent Road in Southwark for Metropolitan Thames Valley.