HG Construction said its workload and project pipeline have reached record levels following major investment in compliance systems and pre-construction expertise ahead of stricter higher-risk building regulations.
The Hitchin-based contractor held turnover steady at £387m in the year to December 2025, as developers across the sector continued to face delays linked to the Building Safety Regulator, which has slowed the start of many projects.
Despite those market challenges, HG increased pre-tax profit by 56% to £14.9m, up from £9.5m the previous year. Profit margins also improved significantly, rising from 2.4% to 3.7%, supported by the firm’s strong in-house delivery model.
Chairman Christopher Benham said early investment in capabilities linked to the Building Safety Act has positioned the company strongly for future growth.
The contractor has also expanded its workforce, increasing staff numbers from 292 to 326 over the past year, with recruitment focused on quality assurance, planning, design, and health and safety functions.
He said: “With a commendable portfolio of Gateway 2 submissions and approvals, the financial outlook for 2026 and beyond is robust, certain, and inspiring.
“HG’s workload and pipeline are the highest they have ever been and our projected turnover currently sits close to £500m.”
HG Construction secured eight Gateway 2 approvals during 2025, as the construction industry continued to navigate long waiting times and evolving submission requirements under the new building safety regime.
The contractor said its approvals pipeline has since grown to 11 projects, providing stronger visibility over future workload as more schemes progress into the construction phase.
Chairman Christopher Benham said that while the Building Safety Act continues to create delays across the sector, it is also introducing “far better structure, pace and control in both design and delivery.”
During the year, HG expanded its self-delivery operations with the launch of new drylining and roofing divisions. Meanwhile, HG Offsite Systems increased production of bathroom pods and utility cupboards by 135%, strengthening the group’s offsite manufacturing capability.
The company’s financial position also improved, with cash reserves rising 23% to £42m and gross profit climbing nearly 30% to £27m.
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