Fast growing housing regeneration specialist RE:GEN Group has more than doubled turnover as it eyes further expansion into the North West.
The Sunderland-based firm says it has secured increasingly larger projects with the likes of major housing associations such as Believe Housing and Gentoo - success which boosted its turnover to £40.4m in the year to the end of March, compared with £14.2m in unaudited figures for the year before. Last year the 120-strong construction firm was named the overall fastest growing company in the North East in the Ward Hadaway North East Fastest 50 Awards.
Work delivered via the Government's Social Housing Decarbonisation Fund for County Durham-based Believe and projects for Sunderland-based Gentoo and it's £19m investment into Pennywell properties helped RE:GEN book a 177% increase in turnover. Meanwhile operating profits grew from £1.03m to £2.1m and gross profits raised from £2.3m to £5.1m.
Read more: Thompsons of Prudhoe sees profits and revenues rise in 75th trading year
Read more: WHP Engineering collapsed with debts of almost £10m, documents show
Bosses said the year's performance broke all targets and brought a number of long-term framework agreements which mean 90% of 2024's turnover is already secured. In the North East, RE:GEN directors are now expecting turnover beyond £60m in the current financial year with secured pipeline of £300m over the next four years.
Last year, RE:GEN expanded its North East headcount by creating jobs for 33 staff from collapsed contractor Tolent. Some of the former Tolent workers took positions in the group while the majority formed RE:GEN Solutions, a new subsidiary delivering an asbestos abatement, loft insulation and fencing.
The group is also making a "controlled" push into the North West market where it intends to deliver its range of refurbishment, retrofit and new build works for housing clients and local authorities across the Pennines. Another division brought about under the group structure, RE:GEN Green is hoped to deliver growth.
Most Read
Lee Francis, CEO for RE:GEN Group said: “I’m incredibly proud of what our business has achieved in its first two years, which is fundamentally down to the dedicated individuals who work for us and work with us. The secret to our success is simple. We deliver on our promises to our key clients in the North East, who have been unwavering in their commitment and support for us. In this time, we have grown genuine partnerships, built on tangible value that is delivering quality social housing across the region.
“Remaining a profitable business has allowed us to strategically reinvest profits back into the group to ensure we retain a highly skilled and talented workforce – which is essential to our sustainable growth. This includes £250k into ongoing middle and senior leadership development programmes as well as establishing the RE:GEN Academy which underscores our commitment to nurturing talent and addressing some of the employment challenges in the communities we work in by offering genuine training and job opportunities for all.
“This will be another important year for us as we look to expand our construction offering into the North West market and continue to support the other subsidiaries that make up our Group structure, including our academy, asset compliance and green services.”