Home North East Esh Group maintains solid foundations as it drives unprecedented change

Esh Group maintains solid foundations as it drives unprecedented change

One of the leading construction companies across the North of England as well as Central and Southern Scotland, Esh Group, has reaffirmed its strength to its employees, shareholders, suppliers, clients and stakeholders, demonstrating that the business has a clear strategy underpinned by a transformational change programme.

In the organisation’s Annual Report for the year ending 31st December 2017, Esh Group’s non-executive chairman, Michael Hogan, stated: “We admit that we are coming through a very tough couple of years when the Group probably grew too quickly. We didn’t have the appropriate level of control, while trying to manage our business on multiple fronts. We also acknowledge that we didn’t have the right skills in place, nor up-to-date systems and technology.”

Andy Radcliffe, chief executive officer at Esh Group, has set out how the business will change for the better. He states: “Here at Esh Group, we have embarked on a major restructuring of the way that we operate and go to market. While this restructuring has resulted in selected withdrawal from certain types of businesses, it has also enabled us to focus our efforts on our core competencies, and so, drive operational improvements for the benefits of our clients.

“Periods of adjustment in any business inevitably lead to an impact on both the top and bottom line. At Esh Group, this has been compounded with the heavy investment that has been made in developing and implementing new technology throughout the business, as well as a degree of ‘Brexit’ uncertainty challenging some of our market segments. However, everything we are doing to transform Esh is aligned to a core strategy of simplification and improved competitiveness. We continue to make good progress along this journey.”


Mr Hogan has echoed this last point, noting that this period of change has enabled Esh Group to build the foundations for growth throughout the business. He also acknowledged that the organisation can present a strong balance sheet that stands at close to £42 million — as well as an enviable market position, supportive shareholders and supply chains, and dedicated staff that are passionate about both their jobs and the Group.
And whilst 2017 has been acknowledged as a tough year for Esh Group, it has continued to work on some key schemes, some of which are listed below:

• The Civil Engineering division completed a £5.8 million contract to install major highway improvements at Birdwell roundabout on behalf of Barnsley Metropolitan Borough Council.
• The Commercial Build division continued the development of Esh Group Eagles Newcastle’s new £6 million Community Arena — Esh Group’s largest-ever leisure project.
• Commercial Build was also awarded work on the £5.5 million, two-storey Durham Diagnostic and Treatment Centre on behalf of City Hospitals Sunderland — its largest healthcare project to date.
• In Scotland, the Commercial Build division started work on a £4 million project to deliver extensive refurbishments at Heriot-Watt University.
• The Esh Facilities division saw its impressive performance at the University of Leeds rewarded with work extended for a further year. The division were also given an important opportunity by securing a place on a four-year framework to deliver minor building works on behalf of Newcastle University.
• The Homes by Esh division formed a key strategic alliance with Darlington Borough Council in the form of a multi-million-pound framework across four years to be the sole developer of the council’s residential schemes.
• The Housing Division completed a scheme for Yorkshire Coast Homes, delivering 105 affordable homes for rent at Helredale Gardens and St Peters Road in Whitby.
“It’s important for us to stress that we don’t like to dwell on the past here at Esh Group,” Mr Hogan stated. In fact, the Group has six key forward looking actions, to get the business into a position that will deliver a successful future:

1. Simplification of the group structure and operations.
2. Develop leadership and management standards.
3. Drive technological improvements and process controls.
4. Focus on the basics of cash, profit, programme, and quality.
5. Invest in, and develop, talent.
6. Maintain an unwavering commitment to the highest health and safety standards.
“We are delivering well against these actions, and I am pleased with how our new leadership team has risen to the challenge, has embraced this drive for change and is setting the business up for a very bright and prosperous future.”

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