Environmental and engineering services giant RSK Group has grown its contracting revenue by 40 per cent but its pre-tax loss has deepened.
The Cheshire-based firm reported construction turnover of £511.7m in the 12 months to 31 March 2024, up from £366.7m in the prior year.
It said its contracting revenue came primarily from design-and-build work on large-scale water assets such as treatment works and reservoirs.
The latest annual figure would have put RSK in 39th place above Lendlease in the CN100 table of top UK contractors.
RSK’s group turnover, predominantly in consultancy work, soared by 52 per cent to £1.9bn in the latest period.
However, it made a pre-tax loss of £132m following a deficit of £86.9m in 2023.
The firm said its latest loss was mainly caused by high interest rates and “proportionally smaller dividends received from subsidiaries”.
It added: “We have made a conscious decision to grow the group, investing in the business to capitalise on market opportunities.”
The firm chose to finance its “initial growth phase” through debt as this “ensures our employees retain control of the business”.
RSK Group’s employee headcount grew from 10,532 in 2023 to 13,899 in 2024. Staff costs rose by more than a third to £728.3m.
Cash at bank increased from £103.6m to £132.2m but the group’s bank loan debt increased.
Loans and borrowings repayable within 12 months almost doubled from £31.5m to £60.6m, while longer-term loans increased from £811.1m to £1.13bn.
These borrowings grew partly to fund RSK’s acquisition programme, the firm said. It acquired 25 businesses over the course of the year, including rail construction and engineering contractor Global Infrastructure Group in September 2023.
In the current financial year, seven more acquisitions have been made and the firm raised £520m in preferred equity in September 2024.
“We will continue to grow the group through bolt-on acquisitions and investment into our existing businesses,” said RSK chief executive Alan Ryder.
