Keltbray prioritises quality over quantity, expects profitable 2026

(Image: Keltbray)

Keltbray Built Environment Limited has announced its financial results for the year ended October 2025, with significant improvement in underlying pre‑tax of £5.3 million, up from £3.2 million in 2024.

The report confirms that while revenue reduced year on year, margin performance improved, which Keltbray said is supported by the continued application of its ‘Integrated Project Model’.

Cash performance also strengthened during the year, increasing by £3.5 million to £11.4 million. This reflects stronger profit conversion and continued discipline in managing working capital, according to Keltbray.

No debt and access to the Keltbray Group’s £30 million Metro Bank facility is highlighted as further underpinning its ‘financial resilience.’

CEO Karl Goose said, “Despite a more subdued market backdrop, we have improved profitability, strengthened margins and reinforced the fundamentals of the business.

“Our Integrated Project Model continues to differentiate us, enabling better control, clearer accountability and consistent delivery for our clients.

“Just as importantly, we exited the year with a stronger balance sheet, improved cash performance and a solid platform from which to deliver our longer‑term five‑year strategy, focused on disciplined growth, resilience and sustainable value creation.”

Keltbray further stated that the results benefit from its restructuring in 2025 which transferred dormant legacy entities outside the group, creating a £14.8 million accounting gain from intercompany debt release. Redundancy costs of £1 million were also included.

It noted that this restructuring and the improved trading performance have strengthened the balance sheet, with net assets increasing from £11.4 million in October 2024 to £30.3 million in October 2025.

The group has entered 2026 with a ‘high‑quality’ order book of £244 million, reflecting current conditions in the London commercial market, including planning delays and continued investor caution.

Despite these headwinds, Keltbray has maintained what it calls a disciplined approach to work winning, deciding to prioritise sustainable margins over volume.

Overall, the company expects 2026 to be a transitional year. It said that performance in the first half is in line with budget expectations, and that while some margin compression is expected, it ‘remains confident of delivering profitability in 2026.’

Growth in 2027 is projected to come through expansion in the national infrastructure, renewables and data centre markets, with revenues expected to exceed £400 million.