Loss of nearly £9m attributed to increase in remediation provisions

Turnover fell and losses deepened at Downing Construction last year, reflecting increases to provisions and the completion of projects without replacement.

Downing is a vertically integrated developer, contractor and property manager focused predominantly on purpose-built student accommodation.

Downing Group

Downing’s Manchester co-living scheme

In results for the year to 31 March 2025, turnover decreased 38% to £66.4m from £107.2m in the year prior.

“This reflects the completion of projects during the year, with no further contracts starting,” the firm said. 

During the latest reporting period, Downing’s Square Gardens scheme at First Street Manchester completed, with 1,287 co-living beds delivered.

While the latest turnover figure marked a sharp drop on 2024, it remains higher than the £44.5m recorded in 2023.

The group also made a pre-tax loss of £8.7m, a deterioration from the £5.8m loss recorded the year before. It said “the majority” of the loss was within its subsidiary company, George Downing Construction, and was “due to the increase in provisions for remediation work on historic contracts”.

The group held a provision of £17.3m at the end of the year, up from £13.2m. This is for “potential contract obligations on completed projects, the majority of which relate to cladding and fire safety issues”. 

“The increase in the level of provision arises following the progress of negotiations on several contracts,” it said.

Last November, Downing submitted an application for a 1,135-bed student accommodation and co-living project in Glasgow.