Firm expects to make profit in 2024

Start-up MMC housing developer Edaroth has reported a loss of £2.8m but said it expects to be profitable from 2024.

The firm, which is owned by engineering giant AtkinsRealis, said in its accounts for the year to 31 December that its annual loss has increased by £619,000 on the £2.18m posted in the same period the previous year.

Edaroth homes, Lambeth 2

Edaroth homes in Lambeth, London

Edaroth said the loss was due to phasing of contracted development agreements, which results in lower revenues in early stages of planning.

It said: “Client agreements typically include a defined fee applicable to the achievement of planning permission and a follow-on bullet payment receivable on the attainment of planning permission and agreement of financial close. Contracts are often loss-making in the early stages of a project.”

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However Edaroth said last year it signed its first three developer agreements and has one more in the pipeline, meaning it expects to be profitable “from 2024 onwards”. It posted just £74,900 of revenue in 2022.

Edaroth was incorporated in 2020 and is owned by AtkinsRealis, the giant Canadian firm which rebranded earlier this month. SNC Lavalin Group announced that it and its subsidiaries, including Atkins and Faithful + Gould, are now known as AtkinsRealis.