Building safety costs keep Durkan in the red

Building safety remediation costs kept housing contractor and developer Durkan firmly in the red for the second successive year.

The firm, which operates across London and the Home Counties, said £6.7m in provisions for building safety remediation in the year to November 2023 had “directly contributed” to it recording a pre-tax loss of £3.9m.

Despite staying in the red, the firm managed to narrow losses from the previous year’s £9.3m.

Revenue during the period rose one third to £172m, with the firm’s housing business seeing a 72% increase to £51m.

Durkan said there had been a “reduction in volumes of work being put out to tender” but added the housing market remained a safe bet in the long run.

It added: “Whilst there are a variety of risks that continue to exhibit an influence on the sector, the fundamental strengths in the housing market remain, with the market for refurbishment and retrofit of existing affordable housing stock growing exponentially.

The firm signed a £145m scheme with Greenwich Council for work at the second phase of the Kidbrooke Park redevelopment in south-east London which will be carried out over the next three years. The deal helped lift Durkan’s contracting order book to £202m.

Durkan said it was focussing on two-stage jobs “to manage the risks facing the sector”.

Year-end cash edged up 3% to £31m.