RED Construction Group announces FY23 results, lauds stepping stone year for over 60 per cent growth
RED Construction Group, the specialist main contractor, has announced its results for the 2022/23 financial year. Alongside stabilising its revenue, the Group has used the year – and subsequent months – to set the company up for more than 60% growth in 2023/24.
Across the financial period, from 1st April 2022 to 31st March 2023, RED Construction Group reported a turnover of £62.15m, maintaining a pre-tax profit of more than £1m, and growing the team by a third. This represents a stabilised income stream when comparing with the previous year, with the 12-month period solidifying RED Construction Group’s reputation for delivering quality developments throughout London and the South West.
The last financial year, and the nine months that have since passed, has allowed RED Construction Group to implement the infrastructure required to expand the business. The Group has already secured £100m in contracts for the current financial year, with expectation of this rising further, and including significant growth for the South West division – which launched in late 2021 – going from returns of £12m in 2022/23 to a predicted £35m in 2023/24.
RED Special Projects, created to deliver on schemes valued between £2m and £10m, will itself turnover more than £25m in the current financial year, while across the Group, staff numbers have risen from 132 in April 2023 to now just under 200. The evolved business structure, alongside investment in back-of-house processes, has given RED Construction Group the ability to scale to meet the needs of new and existing clients.
Graham Sturge, CEO, RED Construction Group, commented: “The focus of the last financial year was to stabilise the business, while investing in key areas that would enable us to grow in the future. I’m delighted to say we have achieved both and are already seeing the benefits of it. The past two years have been challenging, with a volatile construction market and many businesses suffering along the way. In spite of this, we laid the foundations for growth, have doubled our team size and are contracted on projects that will guarantee us a more than 60% revenue uplift. With a record year already on the horizon, we’ll continue to push what RED Construction has built its reputation on: creating long-lasting relationships, channelling real enthusiasm for the work, and delivering great schemes our people and our clients are proud of.”
Key project wins and completions in that timeframe include Phase One of the £35m LEGOLAND Woodland Village scheme in Windsor for Special Projects, the London team’s delivery of a £26m commercial scheme in the City of London, the appointment on landmark office projects with Grosvenor and Hines, and a £13.5m contract in the South West to construct extra-care apartments for the St Monica Trust.