CN100 2026: Three is the magic number
Summary
The latest CN100 ranking shows the UK’s largest contractors have, on average, moved above a 3% pre-tax margin for the first time in several years, with aggregate revenue, profit and cash holdings all rising. However, the article warns that higher labour costs from April 2025 minimum wage and employers’ NIC increases may make it difficult for firms to sustain these margins, especially among larger contractors under pressure to keep order books full.
Why it matters
Contractor financial health affects project pricing, procurement behaviour and delivery risk across residential development and refurbishment work. Surveyors should note the potential for tighter tendering, changing risk appetite and cost pressure to feed through into build costs and programme certainty.
Key points
- Top 100 contractors reported £84.88bn of revenue and £2.46bn of pre-tax profit.
- Average pre-tax margin rose to 3.4%, above the 3% threshold.
- Higher wages and staffing levels are increasing cost pressure after April 2025 tax changes.
- Some firms are prioritising margin over turnover and relying more on frameworks and repeat work.
- Large contractors still face margin pressure as overheads and competitive tendering remain intense.
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