Coinciding with its tenth anniversary, RED Group, the specialist main contractor, has announced a reorganisation of the business to facilitate the next phase of its growth. The company delivered a turnover of £170 million in the last financial year and is set to achieve a turnover of £200 million for the first time in the year ending 31 March 2026.
Under a newly created parent company, RED Group Ltd, the board, as part of its long-term growth strategy, has created four distinct areas of focus: geography; scale; sector specialism; and supply chain. Each contains individual operating businesses, all of which share the same RED culture, ethos and values, with the majority led by long-standing RED senior team members. The new structure creates greater autonomy for the individual businesses to expand and thrive, while also ensuring RED Group can consistently deploy the right skills, experience and scale to sustain high quality relationships, effectiveness, and innovation throughout its expansion:
Geographical focus: RED South West and the newly created RED London and RED East comprise RED Group’s geographical focus. RED South West will continue to provide unparalleled regional expertise and market knowledge, expanding on a variety of its existing projects in the region, such as the £15 million Weston Health Hub in Weston-super-Mare and the £34 million Portwall Place sustainable office development in Bristol. The newly created RED London, incorporating RED Special Projects, will build upon RED’s unique understanding of complex construction in the capital, where RED has successfully delivered a series of landmark projects, including the £52 million 40 Broadway office redevelopment and the £38 million transformation of 55-58 Pall Mall. RED East, the second new division, will facilitate the Group’s growth in the Midlands and the Oxford-Cambridge Growth Corridor, expanding on RED’s £19 million contract to transform Birmingham’s historic 78-90 Colmore Row into high-spec offices and £17 million Watford Travelodge.
Large scale contracts: RED Major Projects is an evolution of the existing RED business, drawing on its track record, success and covenant strength established over the last ten years to focus on £60 million plus contracts.
Sector specialism: the Group’s first sector specialist business is RED Tailored, which will focus on the luxury hotel sector, an area in which RED is building extensive experience with a series of high-profile contracts, including The NED and St Pancras Hotel in London, and the ground-breaking net-zero Zeal Hotel in Exeter. RED Tailored is led jointly by sector expert, Michael Walsh, recently appointed as Strategic Director, and Mark Iori, a key figure in RED’s senior team.
Supply chain: RED Group has acquired Form, a bespoke manufacturer of high-quality joinery, and previously established ONE MEP, a provider of mechanical and electrical services for a variety of sectors in the built environment. Both enhance RED’s in-house capability across all business units.
Graham Sturge, CEO, RED Group, commented: “Over the last ten years, RED has delivered a sustained level of growth that has created a robust, diversified, and highly successful business known for its ability to deliver the most complex of projects by always finding a way to achieve viability during even the most volatile economic climate cycles.
“We are not stopping there though, and over the next five years we want to achieve an annual compound growth of 10% per annum. To do so, however, requires control and opportunity, two tenets that have underpinned RED from the outset. Control comes from having talented teams and a clear plan, which this reorganisation is part of to create even greater focus.
“As for opportunity, we have always had an entrepreneurial spirit, seeing or creating opportunities that enable the company and the team to thrive, and the reorganisation will ensure we can continue to do so as we add scale. The businesses will share the RED culture, but each will have the independence to shape its own growth. In turn, this will create opportunities for the team members within each business to grow, just as RED has done and will continue to do.”
With a stable revenue, in its first ten years, RED Group has grown from a challenger in the construction industry to a trusted partner for some of the most reputable investors and developers in the country. It now employs more than 250 people, and under the new structure will be able to ensure sustained successful growth.
