HG Construction enjoys 56% profit rise post restructure

HG Construction has reported a 56 per cent profit rise after a period of “deliberate” operational restructures to combat wider sector challenges and changes in government legislation. 

The firm, having prioritised its internal structures and capabilities for the 2025 financial year, enjoyed a pre-tax profit increase to £14.9 million, up from £9.5 million in the last period.

Early integration of the Building Safety Act, such as appointing a head of quality assurance and pre-construction engagement with the Building Safety Regulator, has allowed the group to improve its efficiency and quality of projects.

Subsequently, HG has secured 10 Gateway 2 approvals to date, with a seven per cent uptick in its contract margins (FY2024: 5.4 per cent).

For the year ended 31 December 2025, the group’s turnover remained healthy with its revenue at £386.7 million (FY2024: £386.8 million), supported by an operating profit of £14.3 million (FY2024: £9.2 million).

Additionally, HG maintained a strong cash position, with a 23 per cent rise to £41.8 million (FY2024: £34.04 million), underpinned by £66.8 million worth of net assets (FY2024: £59.3 million).

Adam Quinn, chief executive officer at HG, said: “2025 was a year of deliberate consolidation for the group.

“Against a challenging regulatory backdrop, we made a conscious decision to prioritise quality, control and operational excellence over short-term volume.

“That discipline is clearly reflected in our strengthened margins and significantly improved profitability. 

“Importantly, our early and proactive adoption of the Building Safety Act, together with the completion of our operational restructure, gives us real confidence as we move into a period of controlled, sustainable growth.”

He added that given its gateway approvals and record forward order book, he was confident 2026 would be a robust year for the firm.

Was this interesting? Try: Tilbury Douglas ‘thrive’ with record £1.48bn order book

If you have a tip or story idea that fits with our publication, please contact elohor@wavenews.co.uk