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

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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.

Sources

London skyline with construction cranes and unfinished buildings.

London’s Housing Crisis Deepens Amidst Critical Construction Skills Shortage

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London is grappling with a severe housing crisis, exacerbated by a significant shortage of skilled construction workers. This deficit is not only delaying new home builds but also prompting potential buyers to opt for older properties, further straining the market. The situation highlights a critical need for workforce development in the capital’s building sector.

Key Takeaways

  • Over 10% of Londoners face waits exceeding a year for essential tradespeople like handymen and electricians.
  • A similar percentage of prospective buyers have delayed moving into new builds due to construction delays caused by a lack of tradespeople.
  • Many are choosing older homes over new builds because of projected longer construction timelines.
  • A tenth of potential buyers have abandoned purchases entirely due to mortgage offer expirations caused by building delays.

The Scale Of The Skills Gap

New data reveals the stark reality of London’s construction labour shortage. Polling indicates that more than one in ten London residents have endured waits of over a year for services from handymen or electricians. The situation is equally dire for other trades, with less than five percent of residents able to secure a roofer within a month, and only three percent finding a bricklayer in the same timeframe.

Impact On New Builds And Homebuyers

The consequences for the new build sector are significant. Thirteen percent of survey respondents reported delays in moving into their new homes because construction was not completed on schedule, directly attributed to a shortage of skilled workers. Furthermore, the same proportion opted to purchase older properties instead of new builds, citing concerns about significantly extended construction periods. Alarmingly, one in ten individuals were forced to withdraw from purchasing a home altogether when their mortgage offers expired due to these persistent building delays.

Challenges For Tradespeople And The Wider Economy

Clive Holland of Fix Radio highlighted that the demand for construction work consistently outstrips the available workforce, a gap that has been widening. He noted that working in London has become increasingly challenging due to factors such as high daily charges, elevated operating costs, the risk of tool and van theft, and general safety concerns. These pressures are leading many tradespeople to relocate to areas like the Midlands or Bristol, where the day-to-day pressures are more manageable.

Government Targets And The Reality On The Ground

The Mayor of London is tasked with delivering 88,000 new homes annually for the next decade. However, last year saw the completion of only 11,600 new properties. The Deputy Mayor for Housing, Tom Copley, has acknowledged a “crisis” in construction skills, expressing concerns about the insufficient number of trained workers and a lack of educators to train the next generation. This shortage impacts not only the quantity but also the quality of new homes, with an increase in snagging and remedial work suggesting a decline in build quality.

Proposed Solutions And Future Outlook

Calls are being made to make London a more viable place for tradespeople, including suggestions to scrap ULEZ and congestion charges for them and to strengthen enforcement against tool theft. While the government has pledged significant funding to create more skilled construction workers by 2029, the immediate impact on London’s ambitious housing targets remains to be seen. The complexity of the issue extends to attracting talent to teach in further education colleges, with current pay scales being insufficient to draw experienced professionals from lucrative building sites.

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Thurston Group building, securing jobs for over 200 employees.

Jobs Secured: Thurston Group Acquired Out of Administration, Safeguarding Over 200 Roles

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Wakefield-based modular building manufacturer, Thurston Group, has been successfully acquired out of administration, securing the future of over 200 jobs. The deal, finalised on December 23rd, 2025, sees the company purchased by privately owned industrial firm GCH Corporation Ltd, preventing significant redundancies.

Key Takeaways

  • Over 200 jobs saved at Thurston Group.
  • GCH Corporation Ltd has acquired the modular building specialist.
  • Thurston Group faced “several business challenges” leading to administration.
  • The new owners are committed to stabilising and investing in the business.

Administration and Acquisition

Thurston Group, a manufacturer of modular and offsite buildings for sectors including healthcare, education, commercial, and industrial, had filed a notice to appoint administrators in late November 2025. The company, which employed 275 people at the time, appointed restructuring specialists Leonard Curtis to manage the administration process and identify a potential buyer. The sale to GCH Corporation Ltd was completed swiftly, with administrators confirming that the deal successfully protected over 200 jobs, although some redundancies were unavoidable.

New Ownership and Future Outlook

GCH Corporation Ltd, a London-based industrial manufacturing and distribution firm, acquired Thurston Group for an undisclosed sum. Cassie Hutchings, CEO of GCH Corporation, expressed enthusiasm for the acquisition, stating, “Thurston is a respected UK manufacturer of modular buildings with a strong heritage and deep sector expertise. As a long-term, privately owned industrial group, GCH is committed to stabilising and investing in the business. We are excited to welcome Thurston into the GCH family and look forward to supporting its next phase of growth.”

Business Challenges and Strategic Position

Thurston Group’s most recent annual results, for the year ending October 31, 2024, showed a revenue of £46.5m and a pre-tax profit of £2.5m. However, the company had warned of “numerous external pressures” impacting the construction industry, including decreased client spending, cost inflation, and labour shortages. Despite these challenges, Thurston Group holds positions on several significant public-sector frameworks, such as LHC Procurement Group’s £265m modular buildings framework and the £3bn Major Works Education Framework in London. The company had also made strategic acquisitions in the past year, including Storplan Racking Ltd and Alsim System Building, and had set ambitious turnover targets for 2027.

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Kier Group contract for new Darlington Government Hub building.

Kier Group Secures Major Contract for New Darlington Government Hub

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Kier Group has been awarded a significant contract by the Government Property Agency (GPA) to construct a new civil service office in Darlington. This development marks a key milestone in the Government Hubs Programme, aiming to decentralise government functions and boost regional economies. The project is set to create a modern, collaborative workspace for over 1,500 civil servants.

Key Takeaways

  • Kier Group will lead the construction of a new government hub in Darlington.
  • The hub will house over 1,500 civil servants from multiple government departments.
  • Construction is scheduled to begin in early 2026, with completion expected in the first quarter of 2028.
  • The project is part of the wider Darlington Economic Campus initiative.

Project Overview

The new government hub, located on Brunswick Street, will be a state-of-the-art facility designed to foster collaboration and smarter working practices among civil servants. It is part of the Government Hubs Programme, which aims to establish modern, efficient, and sustainable workplaces across the UK, moving jobs away from London and supporting the government’s ‘levelling up’ agenda.

The project involves the construction of a five-storey building on the site of a former car park. Kier’s initial involvement included preliminary ground remediation works, such as clearing debris and removing remnants of previous structures. These early works, which began in September and are expected to conclude in December, have helped to de-risk the project and prepare the site for main construction.

Timeline and Occupation

Main construction works are slated to commence in early 2026 and are anticipated to last approximately two years. The hub is projected to be ready for occupation in the first quarter of 2028. This timeline ensures the project aligns with the broader development of the Darlington Economic Campus (DEC), which already includes Feethams House and Bishopsgate House.

Departments and Impact

Staff from seven government departments will eventually be based at the new hub. These include HM Treasury, the Office for National Statistics (ONS), and the Department for Culture, Media and Sport (DCMS). The relocation of these roles is seen as a significant boost for the North East, contributing to economic growth and creating new job opportunities within the region. Darlington already hosts a substantial number of civil service roles, with ten major government departments represented in the town.

Collaboration and Future Growth

The Government Property Agency (GPA) is leading the development, working closely with Kier Group. This partnership aims to deliver a high-quality, inclusive, and digitally-enabled workspace. The project is expected to create substantial regional economic benefits and contribute to a more representative Civil Service workforce.

Planning permission for the five-storey building was approved in August 2024, following archaeological surveys. The development is a key component of the DEC, reinforcing Darlington’s position as a significant hub for central government operations outside of London.

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Henry Group Holdings liquidation: creditor claims and financial distress.

Henry Group Holdings Faces £141 Million in Creditor Claims Amidst Liquidation

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Administrators for Henry Group Holdings (HGH) have reported receiving claims totalling £141.15 million from unsecured creditors. The London-headquartered company, established in 2016 and solely owned by Mark Henry, entered liquidation on August 18, 2023. HGH is the parent company of Henry Construction Projects, which is also currently in administration.

Key Takeaways

  • Unsecured creditors have lodged claims amounting to £141.15 million against Henry Group Holdings.
  • The parent company, HGH, entered liquidation in August 2023.
  • Its subsidiary, Henry Construction Projects, is also under administration.
  • Administrators are working to assign some claims to the subsidiary’s administration process.
  • A separate £31 million High Court claim has been filed against former directors of Henry Construction.

Claims Against Henry Group Holdings

Joint liquidators Kevin Coates and Robert Starkins from Grant Thornton UK Advisory are managing the winding-up progress for HGH. Their report indicates efforts are underway to assign certain claims to the administrators of Henry Construction Projects Ltd. The primary remaining tasks involve monitoring the progress of these assigned claims, which includes seeking advice from their legal team. Future realisations are currently uncertain and will depend on the successful pursuit of these claims.

Legal Action Against Henry Construction

Meanwhile, the administration of Henry Construction is being handled by FRP Advisory. This firm has initiated a £31 million High Court claim against six family members and former directors of Henry Construction, including Mark Henry. The claim alleges unlawful payments were made from the firm for a family home and relatives’ tax bills, with administrators seeking repayment. A defence document filed with the court asserts that the parties deny all accusations of wrongdoing and argue that the payments were part of a legitimate intercompany arrangement.

The defence document further states that the defendants deny liability on all fronts. The administrators’ claim highlights a “pattern of conduct by Mark Henry” to transfer sums from his companies to “connected persons shortly before they entered insolvency”.

Financial Performance and Insolvency

Henry Construction Projects previously reported a turnover of £402.2 million and a pre-tax profit of £14 million in its financial accounts for the year ending June 30, 2021. However, the firm appointed administrators in June 2023, at which point it owed more than £40 million to suppliers. The next report to creditors from HGH’s liquidators is expected by December 25, 2026.

Sources

New housing estate development in London with apartment buildings.

London Set for Major Housing Boost as 1,000-Home Estate Regenerations Get Green Light

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Two significant estate regeneration projects in London, set to deliver nearly 2,000 new homes, have received planning approval. These developments, spearheaded by housing associations and developers, aim to transform existing estates into vibrant communities with a substantial proportion of affordable housing and improved public amenities.

Key Takeaways

  • Two major London housing developments, totalling almost 2,000 homes, have secured planning permission.
  • Both projects emphasize a significant commitment to affordable housing, including social and London Affordable rent.
  • The schemes will introduce new public green spaces, community facilities, and improved amenities for residents.

Northwick Park Regeneration Moves Forward

Housing association Network Homes has been granted approval for a scheme comprising nearly 1,000 homes on land adjacent to Northwick Park Hospital in north-west London. This project is the second phase of a larger £450 million development that will ultimately deliver 1,600 homes. The overall development, designed by PRP, will feature 19 buildings and include student facilities, commercial spaces, and a nursery. A key feature of this phase is the commitment to 40% affordable homes.

The first phase of this development, which included 654 homes, received approval last year. The partnership behind this regeneration includes Network Homes, London North West Hospitals NHS Trust, Brent Council, and the University of Westminster. This collaboration has also secured £500,000 from the One Public Estate programme to optimize land use.

Friary Park Estate Transformation

In west London, Ealing council has given the go-ahead for a 990-home regeneration of the Friary Park estate. This project is a collaboration between housing association Catalyst and developer Mount Anvil. Subject to the signing of section 106 agreements, construction is expected to commence next year.

The scheme, designed by Levitt Bernstein, will introduce four new tower blocks, with heights ranging from 14 to 24 floors. A significant aspect of the plans is the commitment to delivering 45% genuinely affordable housing, which includes 237 social rent homes and 28 London Affordable rent homes. Beyond housing, the regeneration will significantly enhance green spaces, offering residents private balconies and terraces, podium gardens, play trails, and a new community centre with an improved multi-use games area.

Sources

Empty train carriage on a railway track.

Babcock Rail Plunges to £5m Loss Amidst Rail Framework Slowdown

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Babcock Rail has reported a significant pre-tax loss of £5.2 million for the year ending March 31, 2025, a stark contrast to the £4.8 million profit recorded in the previous year. The downturn is attributed to a slowdown in work across several major rail frameworks and reduced client budgets, leading to a substantial drop in turnover.

Key Takeaways

  • Babcock Rail experienced a pre-tax loss of £5.2m in the year to 31 March 2025.
  • Turnover fell by a third, from £171m to £116.3m.
  • Reasons cited include a slowdown on major frameworks and reduced budgets from clients like Translink.
  • The company incurred £2.7m in restructuring costs.
  • Provisions for future costs increased significantly, including a £5.2m legal provision.

Financial Performance and Contributing Factors

The company’s financial performance was heavily impacted by a confluence of factors. Turnover at Babcock Rail decreased by approximately 32%, falling from £171 million to £116.3 million. This reduction in revenue is linked to the completion of projects on multiple frameworks and a general transition to a new control period within the rail industry. Daniel Hall, finance director at Babcock International, explained that trading reflected “underlying market conditions” leading to revenue reductions during this transition phase.

Specific project impacts include a significant reduction in revenue from Northern Ireland’s Translink, following the completion of major projects and a decrease in the client’s annual funding. Furthermore, revenue from the Medium Signalling Framework in Scotland more than halved, dropping from £20.4 million to £7.2 million, as existing projects concluded.

Restructuring and Provisions

In response to the dip in activity, Babcock Rail undertook restructuring activities costing £2.7 million. The business is now organised around two primary delivery streams: Rail Systems Alliance Scotland and Rail Systems. The company also reported an increase in provisions for future costs, rising from £1.5 million to £8.5 million. This includes a substantial £5.2 million legal provision related to late payment interest charges and penalties stemming from potential compliance errors concerning supplier payments, specifically linked to the Construction Industry Scheme and Domestic Reverse Charge VAT. An additional £2.4 million provision was made for dilapidation costs and contractual obligations on infrastructure.

Future Outlook

Despite the recent losses, Babcock Rail remains optimistic about its future prospects. The company has an order book valued at £16.7 million and sees potential in market opportunities and its position on several zero-valued frameworks. The decline in employee numbers, from 745 to 676, and a corresponding reduction in the wages bill, from £55.9 million to £48.7 million, reflect the company’s adjustments to the current market conditions. The challenges faced by Babcock Rail echo sentiments from other industry players who have also cited delays in Network Rail projects as a reason for reduced profit forecasts.

Sources

UK Construction Output Falters in October 2025, Showing Fragile Recovery

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UK construction output experienced a decline in October 2025, falling by 0.6% compared to the previous month. This downturn follows a modest increase in September, highlighting the ongoing fragility of the sector’s recovery. Both new construction projects and repair and maintenance work contributed to the monthly decrease.

Key Takeaways

  • Monthly construction output fell by 0.6% in October 2025.
  • The three-month period to October saw a 0.3% decrease in total output.
  • Private housing repair and maintenance was the main contributor to the decline.
  • Concerns remain over planning system delays and developer confidence.

Monthly Output Decline

The Office for National Statistics (ONS) reported that monthly construction output contracted by 0.6% in October 2025. This followed a 0.2% rise in September. The decrease was driven by a 0.7% fall in new work and a 0.6% drop in repair and maintenance activities.

Three-Month Trends

Over the three months leading up to October 2025, total construction output saw a decrease of 0.3%. Within this period, repair and maintenance work fell by 1.0%, while new work experienced a slight growth of 0.1%. Four out of the nine sectors surveyed reported a decline.

Sectoral Performance

The private housing repair and maintenance sector was identified as the primary negative contributor to the overall decrease, experiencing a significant drop of 2.3%. Private new housing also saw a decline of 1% during the three-month period.

Industry Expert Opinions

Industry professionals expressed concerns about the sector’s stability. Jo Streeten, managing director for buildings & places at Aecom, noted that the dip underscores the fragility of the recovery and that clients are awaiting clearer signs of faster progress before committing to major projects. She suggested that practical measures like increasing the number of planners, alongside the adoption of AI and digital tools to expedite review processes, could boost confidence and create a more robust pipeline for 2026.

Neil Leitch, managing director of development finance at Hampshire Trust Bank, echoed these sentiments, stating that housebuilding has struggled for momentum. He highlighted that developers face tightening viability conditions and a lack of clarity and support from the surrounding system. Leitch pointed to planning system pressures, with a significant number of planners considering leaving the profession, which could further lengthen decision times and widen the gap between granted permissions and actual site starts. He emphasized the need for consistency, capacity, and follow-through from policymakers, alongside collaboration between policymakers, developers, and lenders, to ensure construction underpins economic growth.

Sources

Construction of the A47 dual carriageway in Norfolk.

Breedon Secures £250m A47 Dualling Contract, Boosting Norfolk Economy

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A significant infrastructure project on the A47 is set to receive a major boost as Breedon, a national construction materials company with a strong Norfolk base, has been appointed as the surfacing contractor. The £250 million project will see a crucial stretch of the A47 dualled, with Breedon playing a key role in supplying and laying asphalt.

Key Takeaways

  • Breedon awarded surfacing contract for the £250m A47 dualling project between Norwich and Dereham.
  • The company will supply 195,000 tonnes of asphalt from its local Longwater plant.
  • Surfacing works are scheduled for completion by April 2027.
  • The project highlights the synergy between local capability and national strength in infrastructure development.

A Major Infrastructure Upgrade

The National Highways project focuses on creating 5.5 miles of new dual carriageway between North Tuddenham and Easton. Breedon’s involvement is critical to this upgrade, with their surfacing works slated for completion in April 2027. This development is part of a larger effort to improve connectivity and reduce journey times along the vital A47 corridor.

Localised Supply Chain Strength

A key aspect of Breedon’s appointment is the utilisation of its Longwater plant in Norwich. This facility, located just five miles from the project site, will supply all 195,000 tonnes of asphalt concrete required. This proximity not only streamlines logistics but also underscores the company’s commitment to leveraging local resources for major infrastructure initiatives.

Investment in Local Facilities

Earlier this year, Breedon completed a £3.5 million upgrade to its Norfolk facility. This investment has enhanced its capacity, allowing it to store up to 360 tonnes of products. The upgraded plant is now better equipped to support significant road and infrastructure projects across East Anglia, demonstrating a forward-thinking approach to meeting regional demands.

Collaboration for Efficiency

Ed Thompson, Breedon’s surfacing solutions general manager for England and Wales, expressed pride in the company’s role. “We’re proud to be supporting Galliford Try and National Highways on such an important infrastructure project for the region,” he stated. Thompson highlighted the benefits of Breedon’s local presence, noting, “With our Longwater site so close to Tuddenham, this is a great example of how local capability combined with national strength can deliver projects more efficiently and sustainably.”

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Empty construction site under grey skies, showing decline.

UK Construction Sector Plummets to Five-and-a-Half Year Low Amidst Economic Uncertainty

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The UK construction sector has experienced its most significant downturn in over five years, with output falling sharply in November. This contraction, the eleventh consecutive month of decline, is attributed to weak client confidence, delayed investment decisions linked to upcoming fiscal events, and a general scarcity of new projects. All sub-sectors, including housing, commercial construction, and civil engineering, reported the fastest drops in activity since May 2020.

Key Takeaways

  • The S&P Global UK Construction Purchasing Managers’ Index (PMI) dropped to 39.4 in November, its lowest point since May 2020.
  • New orders saw the steepest decline since early 2009, excluding the pandemic period.
  • Business optimism has reached its lowest level since December 2022.

Steepest Downturn in Over Five Years

November data revealed a significant contraction in the UK construction sector, with the headline S&P Global UK Construction PMI falling to 39.4 from 44.1 in October. This marks the lowest reading since May 2020 and signifies an accelerated reduction in output levels. The decline has persisted for eleven consecutive months, indicating a prolonged challenging period for the industry.

Sub-Sector Slump

All three key sub-sectors within construction experienced severe declines. Housing activity saw its fastest downturn in five-and-a-half years with an index of 35.4. Commercial construction also faced significant headwinds, registering 43.8, while civil engineering experienced the sharpest fall at 30.0. These figures reflect widespread reports of fragile market confidence and a general lack of incoming new work.

New Orders and Employment Decline

New business within the sector decreased at a rapid pace in November. Approximately 44% of surveyed companies reported a fall in new orders, with only 17% signalling an increase. This represents the fastest downturn in new work since early 2009, barring the pandemic period. Consequently, employment numbers also fell for the eleventh consecutive month, with the latest reduction being the steepest since August 2020, reflecting the lack of new projects and elevated wage pressures.

Weakening Business Optimism

Looking ahead, the outlook for the construction sector remains subdued. Business optimism has fallen to its lowest level since December 2022. While 31% of companies anticipate an upturn in activity over the next 12 months, this is only marginally higher than the 25% forecasting a decline. Concerns about the UK’s economic prospects and cutbacks in clients’ investment spending plans are dampening future activity expectations.

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