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’.

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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