Engineering contractors Taziker suffered increased losses due to inflationary cost pressures and lack of contract awards, in its latest financial results.
Turnover for the year ended 31 March 2024 was £86.4 million, down 0.8 per cent from £87.1 million, the year previous.
The results showed an increase in pre-tax losses from £1.3 million in 2023 to £5.7 million, while operating losses increased to £6.7 million (2023: £2.8 million).
The losses faced in 2023 prompted a financial restructure by buying back a controlling stake in the business from its private equity owners.
Full year 2024 losses were due to several factors including inflationary cost pressure in labour materials.
The Chorley-headquartered civil engineering firm said the diversification into new markets and focus on revenue growth within prior years had a negative impact on the businesses margin percentage and resulted in several loss-making contracts.
“FY24 was an extremely challenging year and turbulent year for the business due to the lack of in-year industry contract awards and a number of contract losses being incurred.
“However, it was a year of significant change, which has laid a strong foundation for the business to build upon its future success.”
The business finished the year with “promising” contract awards and successful framework awards for Network Rail in April 2024, as well as a contract award for Transport Scotland framework projects between £5 million-£25 million.
With a “positive start” to FY25 the company said it has returned to operational profit in H1.
The company continued in a statement: “With an increased volume of work through our framework awards to come online and recent contract wins the outlook for the next twelve months is much more positive.”
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