Turnover at groundworks specialist Houlihan & Co (Holdings) has risen 34 per cent, according to its latest accounts.
In the year ending 31 August 2025, the Surrey-based firm posted turnover of £111.8m, up from £83.2m the previous year.
It saw its pre-tax profit jump by 12 per cent from £6.7m to £7.5m.
In a statement in the accounts, managing director Richard Knight said the business had maintained a “disciplined strategy” towards capital investment.
He said it also continued to invest in plant assets beyond its annual investment allowance where commercially viable.
“This approach ensures operational capability while managing financial exposure in an unpredictable market environment,” he said.
“Targeted investment in plant ensures the group remains operationally ready to scale as the market conditions improve while preserving financial strength.
“Our strategic decision since 2023 to prioritise sustainable growth over volume has positioned the group strongly entering 2026. A stable workforce, consistent profitability and strong client relationships provide a solid foundation to navigate current and future challenges.”
Cash at bank increased slightly to £10.2m from £10m.
Its number of employees dropped from 55 to 48, but its wage bill remained at £3.3m.
During the period the firm paid a reduced dividend of £366,700 compared with £6.4m the previous year.
Knight warned that despite some supply chain pressures easing in 2025, this improvement “remains fragile and subject to external disruption”.
He said the group was anticipating “continued volatility” in the cost of key materials and logistics through 2026 and beyond due to the conflict in the Middle East.
“Fuel price fluctuation remains a critical sensitivity for the business, both directly through operational costs and indirectly through supplier pricing,” he added.
“Increases in fuel prices are expected to feed through into higher material prices, extended lead times, and reduced certainty in project forecasting. The group continues to monitor these factors closely and will maintain a cautious approach to procurement and contract commitment.
“The group’s strategy will remain focussed on maintaining a strong balance sheet, preserving cashflow and selectively engaging in projects that align with its risk profile. Flexibility, cost control and strong client relationships will be central to navigating potential market disruption.”
The firm’s contracts included work on a £151m residential development for Places for People at Ascots Green in Welwyn Garden City, a £38m development in Stevenage for Redrow Homes and a £35m project for Bellway Homes at Virginia Water.