Resi specialist says new legislation continues to delay starts

Family-owned contractor Higgins crept back into the black after two successive years of losses caused by delays on schemes because of second staircase rules and building remediation work.

The Essex-based firm posted a pre-tax profit of just £278,000 in the year to July – but a significant improvement on the near £26m loss it posted last time.

It said it spent close to £7m on “rectification works” on legacy schemes during the year and added that it had earmarked a further £10m for remaining repairs.

higgins

Higgins said project starts continue to be delayed, especially in London

It said it completed 520 homes across eight projects during the year and started on a further 757 homes across four projects.

But in a note accompanying the accounts, the firm said jobs were continuing to take time to get off the ground.

“The requirements of the Building Safety Regulator coupled with a challenging planning system has created uncertainty resulting in delayed project starts, particularly in London,” it said.

The firm said its year-end cash position was up 15% to £9.4m with turnover up 21% to £208m.