Red Construction says that it is focusing on stable growth and risk management after having a spectacular growth in 2023.
In the year to 31st March 2024 Red Construction Group increased turnover by 85% to £114.8m (2023: £62.1m). Pre-tax profit grew similarly from £1.1m last time to £2.0m.
This time last year, three months before the end of the financial hear, the board had been predicting 60% growth for the year. The actual result soundly surpassed its own forecasts.
In the, turnover
The group has already secured more than £100m in contracts for its current (2024/25) financial year.
Key project wins and completions include Red South West’s work on the £22m Zeal Hotel in Exeter and Red Special Projects’ delivery of Warwick Castle Hotel, part of a £16.4m investment in Warwick Castle, following a £35m Legoland Woodland Village scheme in Windsor during the previous financial year for the same client, Merlin Entertainment.
Red Construction London completed phase one works at the Sheppard Trust’s redevelopment of the Royal Cambridge care home in Surrey, alongside delivering Barwood Capital’s multi-million-pound redevelopment of Explore, an office building in Richmond.
Chief executive Graham Sturge, who co-owns the business with Ian Hopkinson and chairman Simon Lousad, said: “12 months ago, we predicted 2023/24 would be a huge milestone for the business, and I’m proud that we’ve met that and more, with a turnover comfortably over the £100m mark for the first time. We’ve also sustained a robust profit margin, an important element of the stable, considered growth we want to achieve year-on-year.
“Whilst we celebrate this, we’re also very conscious of the volatility of our market. Our focus for the coming year remains the same – risk management, stable growth, and supporting our supply chain partners, that are often hit hard by that volatility and rarely spoken about publicly. With contracts secured and work under way that will guarantee more growth for 2024/25 – alongside our ongoing relationships with clients, new partnerships, team growth, and project delivery across London, the southwest, and beyond – we’ve built a sustainable platform to serve one of the biggest industries in the UK with excellence in the years to come.”
Current projects in the capital include a 130,000 sq ft office scheme in Westminster for Tellon Capital, Berkeley Estate Asset Management’s refurbishment of 8 Lancelot Place office building in Knightsbridge and significant works to Manhattan Loft’s St Pancras Renaissance Hotel.
