Student and coliving developer made £13m provision for building safety
Downing Construction has reported another year of losses despite a surge in income.
The firm’s results for the year ended 31 March 2024 showed a “sharp increase in activity” focused on two major contracts at Square Gardens in Manchester.
It said the resulting 140% increase in turnover, from £44.5m to £107.2m, “reflects the scale and progress” of these two contracts.
The first phase, a 1,287-bed co-living scheme, was completed in September after the end of the financial year, while the second, a 45-storey residential tower with 603 studios and apartments, is expected to be completed in the Spring of 2025.
Despite this, Downing fell to a pre-tax loss of £5.78m, worse than the £3.43m loss recorded in the year prior.
This was in part due to a £13.2m provision for building safety, which was higher than last year’s £8.4m provision.
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The company also suffered cost overruns on a project in Scotland.
The 324-bed Meadows scheme in Edinburgh, which was finished shortly after the year end, experienced an overspend of more than £2.4m due to delays and disruption.
Downing said its main focus for the coming year was the completion of Square Gardens and the commencement of remediation work by subsidiary George Downing Construction Ltd.
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