Eric Wright Construction has returned to profitability, posting a pre-tax profit of £828,000, its highest return in 11 years. Turnover at the construction arm increased to £59.8 million in 2018 from £50.3 million in 2021 as the business recovered from the pandemic. Eric Wright Group’s underlying trading profits increased to £11.9m from £10.2m as a result of the construction performance.
“Achieving positive results and a return to profit in such a difficult market is a reflection of the strategy the construction division has been implementing,” said John Hartnett, managing director of Eric Wright Construction. Instead of simply increasing turnover with projects that produce sub-optimal margins or expose the business to unquantifiable risk, we have concentrated on the effective delivery of secured work.
Contract Journal has learned the environment is still very difficult because of ongoing inflation and high interest rates, which threaten the viability of development projects. Our strategy, commercial solid and operational control, active overhead management, and an engaged and motivated workforce produce a sustainably profitable company. The outlook is promising, and the order book is secured for over £85 million in 2023.