Higgins Group has reported a downturn in revenue and profitability in its latest financial results.
Turnover for the Essex-headquartered contractor for the year ended 31 July 2023 was nearly £172 million, down from almost £216 million in the prior period, with a pre-tax loss of £25.8 million (FY2022: £5.4 million loss).
The company attributed this to a combination of a “build year” within its development arm (Higgins Homes), the introduction of the second staircase rule holding up new starts and build cost inflation.
“Turnover and profitability were further impacted by significant build cost inflation following the ongoing conflict in Ukraine, resulting in heightened project viability issues, all of which created volatile market conditions and uncertainty amongst partners ultimately leading to project delays and deterioration of profit,” said Higgins.
The group reported a total operating loss of £23.6 million, compared to a £4.2 million loss in FY2022.
A business restructure in the period also saw Higgins Partnerships project delivery segmented into regions.
Net assets were valued at £21.4 million, compared to £46.1 million in the previous period.
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