Hull's Spencer Engineering Group says it remains undeterred, despite noting a failed investment in a local green energy project in latest accounts, resulting in pre-tax losses. The globally recognised firm incurred a £5.1m loss from the sale of the troubled Energy Works power plant on Cleveland Street, as revealed by its latest financial statements.
However, Charlie Spencer, founder and CEO, maintains that the 36-year-old company is well-positioned for further growth, citing robust underlying performance and an increase in its order book and turnover. Financial reports for the year ending March 2025 show that Spencer Group swung to a pre-tax loss of £4.3m, but operating profits before exceptional items rose from £979,000 to £1.38m.
The One Humber Quays-based group, which employs over 300 people, saw its turnover increase by 15% to £70m, thanks to its success in securing and executing high-value, multi-disciplinary engineering projects. Hull-based experts have participated in a variety of high-profile projects, including the reconstruction of the Union Chain Bridge in the Scottish Borders - the world's oldest suspension bridge still in use, as well as the renovation of the Menai Suspension Bridge in Wales, and most recently, a role in the £1bn construction of the Pattullo Bridge in Canada.
Spencer Group's financial statements reveal a £5.1m impairment on loans extended to the parent entity of the £200m Energy Works waste-to-energy facility on Cleveland Street, which has encountered multiple operational difficulties resulting in underutilisation and temporary closure. The site changed hands earlier this year, with construction materials firm Ashcourt Group acquiring it and reportedly intending to recommence operations in the coming year.
The transaction has significantly diminished the worth of Spencer Group's minority stake in the project, though management emphasised that the one-off impairment carried no cash implications, as revenue generation was not anticipated for several years, reports .
Charlie Spencer OBE, founder and executive chairman of Spencer Group, said: "These results highlight the continued strength and resilience of our business. While the impairment charge related to a historic investment has impacted our statutory profit, it is a non-recurring accounting adjustment with no cash consequence. Our operations remain robustly profitable, cash generative and well-positioned for sustained growth.
"We're pleased to have increased turnover by 15%, strengthened our cash position, and boosted our secured order book. This success reflects the dedication and talent of our people, the trust of our clients, and our long-term commitment to delivering engineering excellence across critical infrastructure sectors."
As it embarks on its 2025-26 financial year, Spencer Group - a finalist in the Large Business of the Year category at the recent Hull and East Yorkshire Business Awards - has secured £83m worth of work and a future opportunities pipeline estimated at around £300m.
Spencer Group is a specialist in designing and building multi-disciplinary engineering projects, operating across the º£½ÇÊÓƵ's rail network. It maintains suspension and multi-span bridges, offers materials handling and bulk storage solutions, and executes complex construction schemes.
Its dedicated bridge division has undertaken projects on some of the º£½ÇÊÓƵ's most notable crossings, including the Humber, Forth and Severn Bridges.
