32% revenue increase & 17% higher profits build on three-year consecutive growth
Vertically integrated off-site construction specialist Reds10 announces its annual results for the year ended 31 March 2023, delivering another strong financial performance, recording a third consecutive year of turnover and profit growth and significantly strengthening its balance sheet.
The strong performance has been delivered by harnessing a platform approach and through considerable investment in customer relationships and customer-focused product development.
Key highlights:
- Revenue up by 32% YoY to £83.8m (£63.4m in 21/22; £37m in 20/21)
- 126% total increase over three-year period
- Anticipating continued growth – c. £115m revenue forecast for current year
- Profit after tax up by 17% YoY to £5.6m (£4.8m in 21/22; £1.3m in 20/21)
- Operating profit remained strong and well above industry benchmarks at 6.2%
- The company has a strong balance sheet and remains debt free
- Robust pipeline in place that exceeds future projections – secured revenue (orders and intents) at year end of £272m – with 100% coming from long-term programmes of work
- Invested in strengthening and growing team – 276 employees at year end, representing a 69% increase during the year (136 in 21/22; 105 in 20/21)
- Further expansion of manufacturing facility in East Yorkshire – secured 4th factory and increased production capacity by 25% to 200,000m2 (3 more factories planned)
UK privately owned Reds10 has an extensive pipeline of government work, having commenced £60 million of construction work during the period on separate projects for the Ministry of Justice, the Department for Education and the Ministry of Defence. In addition, the company has secured positions on a further three value-creating frameworks, for the Crown Commercial Service Offsite Solutions, MMC New Homes and HNS SBS.
Matt Bennion, CEO of Reds10, said: "This year has been another period of high performance and achievement as Reds10 continues its consecutive year-on-year growth trajectory, bucking the market trend despite wider challenges. Our strong secured pipeline of work is testament to Reds10's focus on innovating products that are tailored to meeting customers' needs, our unique platform approach, vertically integrated delivery, an ongoing commitment to product innovation and in-house design capabilities.
"We have continued to enhance our reputation in the industry as a Tier 1 contractor that consistently delivers innovative building solutions. Our mission is to change the way spaces are designed, built, financed and operated, proving that MMC can deliver better, faster and more sustainably compared to traditional methods."
During the year, Reds10 invested significantly in R&D to develop and deploy new technologies that help to improve end user experience and building quality. The company also continues to invest in wider ESG initiatives, delivering UK prosperity benefits to support long-term sustainability and continued growth.
For further information visit: www.reds10.com
