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Building Safety Act ‘impacts’ Downing Construction

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Downing Construction has reported a series of losses in its latest financial results following cost overruns on jobs and the ‘impact of the Building Safety Act on previous projects’.  

Credit: Seven Storm Photography (Pexels).

While turnover for the year ended 31 March 2024 was £107.1 million, up significantly from £44.4 million the year prior, Downing generated a pre-tax loss of £5.7 million (FY2023: £3.4 million loss).    

Despite a “sharp increase” in activity during the period, Downing suffered a cost overrun of more than £2.4 million on a student scheme in Edinburgh owing to delays.  

And, in addition to a general increase in overheads, potential historic contract obligations on completed projects owing to the Building Safety Act ‘continued to be a key issue for the group’ – including increased provisions plus providing relevant training and awareness for its workforce.  

Downing turned in an operating loss of £6.1 million, deepening a £3.5 million loss the previous year.        

At the year end, its balance sheet had net liabilities of £5.2 million, compared to £551,358 in assets the year before, but with strong cash reserves of £21.8 million (FY2023: £15 million).           

The Liverpool-headquartered business posted a loss for the year of £5.7 million, compared to a £3.4 million loss recorded the year prior. 

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