Higgins Group Surges Back to Profitability with Turnover Exceeding £300 Million

Family-owned contractor Higgins has announced a significant return to profitability, with its annual turnover surpassing the £300 million mark. This marks a strong recovery after two years of losses, driven by a substantial increase in revenue and strategic management of legacy issues.

Key Takeaways

Higgins Group reported a pre-tax profit of just over £1 million for the year ending July 2025, a notable increase from £280,000 in the previous period.
Turnover surged by 51% to £315 million, exceeding the £300 million threshold.
The company allocated £7.3 million towards rectification works on older projects and set aside an additional £3.9 million for remaining repairs.
Despite market challenges, sales rates and values remained in line with expectations, demonstrating the desirability of their homes.
The firm’s financial health improved, with cash reserves rising to £25 million and debt reducing to £14.7 million.
Higgins Homes has entered a not guilty plea to corporate manslaughter charges related to a 2018 incident.

Financial Recovery and Growth

The Essex-based contractor has successfully navigated a challenging period, reporting a pre-tax profit of just over £1 million for the year ending July 2025. This figure represents a substantial improvement from the £280,000 profit recorded in the previous year. The company’s income experienced a significant boost, climbing by 51% to reach £315 million, comfortably surpassing the £300 million milestone.

Addressing Legacy Issues

Higgins acknowledged spending £7.3 million on “rectification works” for older schemes during the reporting year. Furthermore, the company has earmarked an additional £3.9 million to address remaining repair obligations. Despite these costs, the firm expressed confidence in the quality and desirability of its housing developments, noting that sales rates and values were broadly in line with expectations.

Market Challenges and Future Outlook

While celebrating its financial turnaround, Higgins highlighted ongoing challenges within the construction sector. The company noted that regulatory requirements from the Building Safety Regulator, coupled with a complex planning system, have led to project start delays, particularly in London. Nevertheless, the firm’s financial position has strengthened, with cash reserves increasing by over £15 million to £25 million and total debt decreasing from £20 million to £14.7 million.

Legal Proceedings

In a separate development, Higgins Homes has entered a plea of not guilty to charges of corporate manslaughter. The charges stem from a fatal accident that occurred on a Higgins Homes construction site nearly eight years ago, involving the death of 28-year-old pedestrian Michaela Boor. The company stated that its directors believe there is a strong defence. A trial is anticipated to commence later this year.

Higgins was ranked 93rd in Building’s Top 150 Contractors & Housebuilders list last year, marking a rise of 28 places from the previous year.