Despite a 72% increase in turnover, the Durkan residential construction division ended the year at a loss. The reason was the allocation of reserves for restoring building safety. The contractor has faced this situation for a second consecutive year, although losses were lower this year.
- Durkan invested £6.7 million in building safety remediation.
- The division reported a £3.89 million loss.
- Group profit increased from £29.5 million to £50 million.
- Refurbishment and retrofit remain important growth areas.
What causes this safety problem?
Executive Director Denny Durkan said the company follows a disciplined approach to a challenging market and continues investing in building safety. The investment supports future land opportunities, staff, customer service, and quality.
In London and nearby towns, contractors secured £171 million of projects compared with £132 million in 2022. Total group turnover reached £202.5 million.
Which consequences will it have?
Despite the challenges, Durkan looks confidently to the future. Revenue benefited from pre-construction services for Phase 2 of Kidbrooke Park, and the company received a three-year £145 million contract, becoming the largest contractor in Greenwich.
The company says refurbishment and retrofit of existing affordable housing stock are growing exponentially.