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Housing contractor Durkan suffers second year of losses

May 20, 2024
in General
Housing contractor Durkan suffers second year of losses
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Despite a 30% rise in revenue to £172m, the provisions and pressure on the housing market saw it suffer pre-tax losses of £3.9m in 2023, improved from a £9.3m loss in the prior year.

During 2023, Durkan increased provision by £6.7m to bring a total carrying amount set aside for fire safety works to £12.6m.

Durkan trading divisions

2023
2022

Contracting
£120m
£102m

Residential sales
£52m
£30m

Danny Durkan, executive chairman, said that the contracting division made progress across all project sites during the year despite the prevailing market conditions.

He added that to control risk Durkan has focused on two-stage opportunities and secured the Royal Borough of £145m Greenwich Phase 2 Kidbrooke Park project, lifting the total order book of £202mto be delivered over the next three years.

Durkan’s refurbishment pipeline continues to expand as local authorities and housing associations commit to investing significant capital in the refurbishment and retrofit of existing stock.

He said that having invested more senior management time in the refurbishment division,  it secured places on six frameworks during the period – expanding the firm’s presence across a total of 17 frameworks and term contracts.

The Durkan Homes division continued to grow and strengthen its brand, exceeding a £50m turnover for the first time, and generating healthy operating profits.

Further growth is expected over the next five years, with around 165 mixed-tenure homes set to be delivered over the coming 12 months, and land acquired across Essex, Hertfordshire and Cambridgeshire providing scope for a further 750 homes in the years ahead.

Durkan also retained strong liquidity with a cash balance of £31m. 

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : ConstructionEnquirer – https://www.constructionenquirer.com/2024/05/20/housing-contractor-durkan-suffers-second-year-of-losses/

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