At Esh Group’s Annual General Meeting staff members who benefit from an expanded Employee Shareholder Scheme heard Chairman, Austin Donohoe, reveal record results in what he described as a ‘landmark’ year for the Group.

Gross turnover for the Group in 2004 was £95m representing an increase of 31% on 2003. Of this figure, £7.9m represented intra-Group trading and £0.9m the apportioned turnover in the recycling joint venture with Aggregate Industries plc, Bardon Esh.  The consolidated Group turnover, as reported, was £86.2m, also representing a 31% increase on the comparative figure in 2003.

Mr Donohoe, who became Non-executive Chairman in January 2004 following the retirement of founder-director Michael Hogan, said:

‘It is with great pleasure that, as new Chairman, I report on an extremely good year for Esh Group.  Whilst we have continued to enjoy favourable market conditions, a step change in the performance of the business and a growth in confidence of its people are clear for all to see.  The result has been outstanding growth for the Group as each area of the business has delivered a strong performance.’

During the year the Group continued to refine its strategy and to focus efforts on the core businesses.  Consequently interests in Philadelphia and Tursdale Industrial Estates were sold at the end of the year.  This enhanced profit figures and, with this exception excluded, the underlying operational profit increased from 11.2% in 2003 to 13.9% in 2004.

Esh Group’s innovative Employee Share Ownership Scheme was launched with the inception of the Group in 1999 and is an important part of the culture of the business.   All employees are eligible to participate and receive shares as part of a performance related reward package. 

Brian Manning, Chief Executive of Esh Group explained:

‘Over the last six years the value of shares originally issued has increased significantly and many employees now have substantial cash investment. Through refinements to the Scheme ratified at the AGM, employees have now been given an option to take out up to 20% of their holding.  I am delighted that staff who have contributed to the success of the business are now seeing such meaningful financial returns on their investment and commitment.’

Derek Rayner, Contracts Manager with Lumsden & Carroll the civil engineering and construction arm of Esh Group, has worked for the business for 28 years.  He commented:

‘When the Scheme was set up we saw it as a very nice gesture and a good incentive for the young people – rewarding loyalty and effort.  The growth in value of the shares is staggering; it’s quite unbelievable to think that we now have a major asset and real stake in the business.  It’s really appreciated.’

Esh Group’s quality commercial performance was mirrored by an increasingly elevated profile during the year as the Group:

• was ranked 55th in the Sunday Times ‘Fastest 100’ 
• was crowned ‘North East Company of the Year’ with Chief Executive, Brian Manning, being awarded Durham and Wearside ‘North East Executive of the Year’
• moved into new purpose-built headquarters on the outskirts of Durham - officially opened by Sir Bobby Robson in March 2004
• And, for the school leaver training scheme “Fit for Employment”, Esh Group was awarded:
  the ‘Outstanding Achievement Award’ by Constructing Excellence in the North East
  Business in the Community’s national ‘Big Tick’ Innovation Award.