After a financially messy 2022 that involved cleaning the stables, Tilbury Douglas Holdings posted a pre-tax profit of £5.8m in 2023 on turnover of £507.2m (2022: £405.2m).
The group finished the year with £42.3m cash, a £30.8m increase from 12 months earlier.
Average cash position also improved, with the average month-end position being £32.9m in the second half of 2023 compared to £13.3m in the second half of 2022.
The board attributed the results to “consistent tight governance, high quality work and profitable trading”.
The 2023 performance is in market contrast to 2022 when the group made a pre-tax loss of £94.0m. That was to do with the costs of legacy contracts, notably in waste to energy, and more particularly extricating itself from the ashes of the failed Interserve group and concomitant pension fund liabilities.
The past is now firmly in the rear-view mirror, the company says.
Underlying operating profit rose from £6.2m in 2022 to £9.7m in 2023.
Most of 2023’s profits came from the Regional Building division, which also accounted for £331.2m of group revenue. Fit-out (Paragon) generated revenue of £76.1m and Engineering (M&E) £14.4m.
The Infrastructure division, focused on highways and water, had a more difficult year, posting an operating loss from its £85.5m turnover. After a review during the year, the Infrastructure division narrowed its focus to regulated industry frameworks and anew management team put in. In March 2024 Andrew Bull joined from Arcadis as Tilbury divisional managing director, replacing Paul Thain, who has retired.
Across the group, Tilbury Douglas won £533m of new contracts in 2023 and, as a result, its order book (secured and preferred contractor) stood at more than £1bn at year-end. This
before 2024 started, although other short-term new work may complement this.
Tilbury Douglas also reports a profitable start to 2024 with more than £150m of turnover in the first quarter and a continuing strong cash performance. In addition, its has won more than £172m of new contracts during this period and the order book reached £1.3bn by the end of March.
Chair Nicholas Pollard said: “2023 was a successful first full year for the Tilbury Douglas Group as a standalone major contractor and engineering business. Not only was the group able to grow its revenue in 2023 but both the group’s main subsidiaries, Tilbury Douglas Construction Limited and Tilbury Douglas Engineering Limited, were able to post positive results. With the past now behind us and the business running smoothly, my board colleagues and I remain confident in and are excited by our group’s future.”
Chief executive Paul Gandy: “In 2024, we are celebrating the 140th anniversary of the Tilbury Douglas business, which goes from strength-to-strength, through the determination, skill, and hard work of all our colleagues. This remains the heart of our company’s success and resilience through the years.”
Actually Tilbury Douglas is arguably only 33 this year since it was created in 1991 when Tilbury Contracting Group joined forces with RM Douglas. However, it can indeed trace its roots back to the formation of the London & Tilbury Lighterage Company in 1884, whence it moved into dredging and, years later, civil engineering and construction.
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