Second year of losses at Durkan despite 72% turnover growth in housebuilding division

Turnover at Durkan’s housebuilding division increased 72% last year but fresh provisions for building safety remediation resulted in a second year of losses at the wider construction group.

Results for the year ended 30 November 2023 showed the division recorded income of £50.8m, up from £29.5m the year prior.

Revenue rose across the business, which operates across London and the Home Counties, with a combined turnover of £171.7m recorded – up from £132m in 2022.

But the firm added a further £6.7m in provisions for building safety remediation in the year, which it said had “directly contributed” to it recording a pre-tax loss of £3.89m.

It marked the second consecutive year of losses for the firm, although the figure was smaller than the £9.34m loss recorded last year.

Executive chairman Danny Durkan said the company’s focus “remains on a disciplined approach” to a challenging market.

“This will allow the business to invest in further land opportunities as they become available, and maintain its focus on investing in our people, and in retaining the levels of customer service and quality our customers across the Group have come to expect,” he added.

In the report, the board said a “reduction in volumes of work being put out to tender”, explaining the business’s contracting orderbook, which stands at £202.3m currently.

“Whilst there are a variety of risks that continue to exhibit an influence on the sector, the fundamental strengths in the housing market remain, with the market for refurbishment and retrofit of existing affordable housing stock growing exponentially,” it said, noting that it was investing with a “distinct focus” on retrofit and refurbishment.

Group turnover in the year benefitted from revenues generated from a pre-construction services agreement on Kidbrooke Park Phase 2, a scheme led by Greenwich Council.

In December, the local authority awarded Durkan the full job, which will be the contracting division’s largest contract to date, delivering £145m of value over the next three years.