A rebound in housebuilding has helped a Yorkshire construction firm increase its turnover, even as profits fell, highlighting ongoing margin pressures in the sector.
For the year ended 31 March 2025, turnover at Norcon Construction rose to £45.5 million, up from £42.8 million in 2024.
Despite the 6.2 per cent increase, pre-tax profit fell to £342,086 from £1.6 million, with gross margin declining from 10.8 per cent to 6.9 per cent due to fixed-price contract pressures.
Trading was challenging early in the year, but lower inflation, falling interest rates, and continued housing shortages improved build rates and sales volumes later in the period.
Total borrowings rose to £1.3 million (FY2024: £ 296,076), including three new unsecured loans, with £821,220 repayable within a year and £521,925 due after one year.
The firm invested £1.5 million in plant and vehicles, strengthened relationships with housebuilders and housing associations, and has since secured several new contracts, giving it a “strong order book for 2026 and beyond.”
Its goal is to capitalise on increased turnover, driven by the continued prioritisation of housing by the UK Government.
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Bosses said: “Trading continued to be challenging for the company and the housebuilding industry in general as economic conditions continued to affect completed house sales and therefore the volume of work for groundworkers in the early part of the year.
“However, the reduction in inflation and interest rates, together with the continued housing shortage, has resulted in an improvement in house sales and build rates and the company anticipates that volumes will continue to improve.”
Driffield-based Norcon Construction, a family-run business with more than 50 years’ combined experience, delivers domestic and commercial construction across Yorkshire, the Midlands, and the wider UK.
Since 2011, it has worked with major housebuilders and commercial clients across the UK, including Cala Homes, providing groundworks, infrastructure, and building solutions.
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