HW Martin Hits Record Revenue as Expansion Strategy Pressures Margins

HW Martin Holdings has reported its highest-ever turnover, driven by strong growth across its operations—particularly in traffic management—despite a dip in profitability as investment and rising costs weigh on margins.

The Derbyshire-based group saw revenue increase 18% to £316m for the year to July 2025. However, operating profit fell to £25m from £30m, while pre-tax profit declined to £27m from £33m, reflecting margin pressure across the business.

Traffic management continues to be the group’s largest division, generating more than half of total revenue. Turnover in the segment rose significantly to around £178m, but profits remained broadly flat, leading to a drop in operating margin as the company absorbed higher costs and reinvested heavily to support expansion.

The group attributed the reduced margins to a combination of inflationary pressures and a major programme of investment. This has included acquisitions, fleet upgrades, new depots and workforce growth to strengthen its market position.

Among the key investments were the £4.2m acquisition of a traffic management business from Tarmac and a stake in technology firm Fewzed, aimed at enhancing digital capabilities. The company also committed more than £15m to plant and equipment, alongside further spending on electric vehicles and infrastructure such as a new maintenance facility.

Other divisions delivered steady growth, with waste recycling and management generating £83m in revenue, while fencing, vehicle restraint systems and specialist vehicles all reported increases.

The company has also secured long-term work, including a 15-year contract with North Northamptonshire Council, and is expanding operations into new regions such as Norfolk and South Wales. Investment is also supporting involvement in major infrastructure projects, including Sizewell C.

Despite the drop in profits, HW Martin remains in a strong financial position, with net assets rising to £153m and cash reserves of £60.5m, with no external debt.

Overall, the results reflect a business prioritising growth and capability building, with the expectation that current investments will support stronger returns over the longer term.