Two Years of Negative Profits: Durkan problems with safety remediation

Despite a 72% increase, the Durkan residential construction division ended the year at a loss. The reason for it is the allocation of reserves for restoring building safety. The contractor has faced this situation for the second consecutive year, although the losses are significantly lower this year.

Main source: Second year of losses at Durkan despite 72% turnover growth in housebuilding division

What causes this safety problem?

According to Executive Director Denny Durkan, the company focuses on a “disciplined approach” to the challenging market, which is why it invests in restoring building safety. For example, last year’s investments amounted to £6.7 million, which directly contributed to a loss of £3.89 million.

“This will allow the business to invest in further land opportunities as they become available, and maintain its focus on investing in our people, and in retaining the levels of customer service and quality our customers across the Group have come to expect,” – Durkan adds.

Despite that, summarizing last year’s result, company profit composed 50 million pounds, compared with 29,5 million the year before. In London and nearby towns, contractors got a project in 171 million pounds, in comparison with 132 pounds in 2022.

Which consequences will it have for the company and the global market

Despite these challenges, Duckan confidently looks to the future. Over the past year, the group’s turnover benefited from the revenue generated from the pre-construction services agreement on Phase 2 of Kidbrooke Park, under a scheme managed by the Greenwich Council. Additionally, the company received a 3-year contract for $145 million, becoming the largest contractor in Greenwich. The company’s total turnover today amounts to £202.5 million.

“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,” – company officials note.

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