The pre-tax profit was also up strongly to 拢1m following a group re-organisation, giving an operating margin of 2.6%, up from 1.5% in 2011. The company is targeting 4%.
In 2009 ERH adopted the strategy of focusing on regional frameworks in key sectors, including education, healthcare, care homes and highways.
Managing director Dave Jones said: 鈥淭his improved financial performance is the result of the hard work and commitment by everyone within the ERH Group.聽 It鈥檚 been a tough few years for the sector and like many, we鈥檝e suffered a little pain, but we recognised that to follow the pack and pursue contracts and turnover, at the expense of profitability, would only lead to failure 鈥� a fact borne out by a succession of failing contractors.
鈥淥ur processes across all divisions, Construction, Building and Communications are lean and efficient. We鈥檙e now in a good position to exploit the experience and resources within the group, to win tenders and deliver projects. The changes we have made to our business have realised significant efficiency savings and put us in good shape to achieve our growth targets 鈥� matching the 65% growth seen in 2012 however, will be a challenge.鈥�
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