Neilcott clears employee ownership debt after profit more than doubles

Neilcott Construction has paid off the remaining loans tied to its move into employee ownership five years ago after pre-tax profit more than doubled.

The south east building contractor made just over £14m of payments last year to redeem its outstanding vendor loan notes, clearing the balance without turning to external finance.

Despite the outflow, Neilcott still closed 2025 with £22m cash in the bank.

Pre-tax profit jumped to £14.7m from £7.1m as turnover rose 16% to a record £154m. Operating profit climbed to £14.5m from £9.8m, lifting the operating margin to around 9.4%.

The Orpington-based contractor also expanded its workforce to around 200 staff from about 177 a year earlier as activity stepped up.

Under the employee ownership model, a further £356,600 was distributed to eligible employees on an equal-share basis during the year. That takes total payouts since the transition to nearly £1.3m.

Neilcott said its regional markets still offered significant headroom for controlled growth, with turnover representing only a small share of the available work pipeline.

The contractor enters 2026 with no borrowings and is forecasting another managed rise in turnover backed by strong gross margins.