Barhale’s pre-tax profit rose by a fifth to £16.1m in the year to 30 June 2026, as increased water-sector investment helped drive growth.
The contractor’s turnover increased by 5% to £239.5m, from £227.7m a year earlier. Chief financial officer Julian Ripley said the increase was partly supported by recent acquisitions, alongside investment in quality and planning.
Water investment supports demand
Ripley said turnover had not fallen at the start of the latest five-year asset management period, as would typically be expected after the final, busier year of the previous cycle. He attributed this to the increased scale of investment in the UK water sector.
AMP7 covered water companies’ investment programmes in England and Wales from 2020 to 2025, while AMP8 runs from 2025 to 2030. Some AMP7 work continued into 2026, according to Construction News.
Barhale said its profit exceeded target after it delivered several target-cost contracts in which efficiencies generated additional value. Ripley cited “disciplined project selection, innovative engineering solutions and strong commercial management” as contributors to the result.
Acquisitions and restructuring
The company’s cash position improved from £29.8m to £44.9m. Dividends increased from £2.9m to £3.5m.
Barhale acquired electrical, structural and civil engineering specialist ESL in December 2024. The company said its broader design-and-build offer also supported turnover growth.
A restructuring announced in November 2025 has been completed, with five new director posts created to support growth in water infrastructure. Barhale is consulting on proposed investment in its business systems and plans to expand in-house capabilities to reduce reliance on subcontractors.
Average employee numbers increased from 1,099 to 1,193, while the wage bill rose from £69.4m to £78.7m.
Order book remains above £1.7bn
Barhale’s order book stood at £1.74bn, down from £1.85bn a year earlier. Ripley said demand linked to infrastructure renewal, environmental improvements and additional capacity should generate substantial future work.
The contractor was among those selected for Thames Water’s £4bn major projects framework, covering water and wastewater infrastructure across London and the South East.