Higgins Group has announced that a new generation of the Higgins family will take over its leadership, while a restructuring will also see a reduction in the number of staff roles.
Brothers Richard and Martin Higgins, group chairman and director respectively, will retire in July next year. Going forward, from August this year, the third generation of the family will take on the main roles.
Richard’s sons Declan and Dominic Higgins will become chief executive and chief operating officer respectively, while Martin’s son William Higgins will become group chief executive. The new executives are all grandchildren of Derek Higgins, who founded the company in 1961.
At the same time as the executive review, Higgins Group, which primarily builds homes, is “implementing[ing] a restructuring of the delivery element of the business” which will involve organizing the business by region.
The Essex-based contractor and developer said the restructuring “will improve operational efficiency and provide a platform for our growth targets”.
It has launched a consultation process as a result of both the succession and restructuring plans. Higgins Group said it could not comment on the number of possible redundancies until the consultation process is complete.
Richard Higgins said: “The industry has experienced volatile market conditions in recent years and the new requirement for secondary ladders has resulted in a number of schemes being delayed.
“We are positioning ourselves to ensure that we are efficient and versatile to take advantage of future opportunities. We will support our staff during this period.”
Declan Higgins, incoming chief executive, said: “The business has ambitious goals for the next decade, focused on growth, ESG, employee development and becoming net zero. To achieve our goals, it is essential that we operate in the most efficient way possible.
“We understand that a proposal to streamline our structure and reduce roles across the group creates an uncertain time for all our staff and we will continue to support everyone as we move the business forward.”
Higgins Group posted a pre-tax loss of £5.4m in the year to the end of July 2022, after setting aside a £4.75m provision to cover old repair work residential schemes. The loss came despite turnover rising 39 per cent to £210.3m, and headcount rising from 230 to 318.
