London-based developer Durkan saw turnover increase 34% while pre-tax profits dropped 71% between 2020 and 2021
Housebuilder and contractor Durkan has reported a 71% fall pre-tax profit for the year to 30 November 2021 despite a strong recovery in turnover, according accounts just published.
The firm recorded pre-tax profit of £710,572, a drop from the £2.45m reported in the same period the previous year.
The firm’s turnover went up 34% at the same time, from £102.4m in 2020 to £137.5m last year.
Company chair Daniel Durkan said in the firm’s accounts, published on Companies House, that it had been a “positive set of financial results” despite it being “another year in which we have felt the ongoing impact of the Covid-19 pandemic”. Housebuilding projects had been delayed because of the pandemic last year, Durkan added.
He said the “ongoing commitment to delivery” by staff meant that “strong operating profits” were reported across the company’s project portfolio and housebuilding sites.
The company chair explained that the group was committed to reviewing its “substantial” legacy portfolio of homes to identify any buildings that needed remediating in light of the fire safety crisis, including rectifying any unsafe cladding. “The board continues to assess each buiding on its own merits”, Durkan said.
The group has allowed a £6.1m provision for completed projects to cover the costs of works repairing buildings’ defects. At the year end remediation was under way on several buildings, the accounts said.
Durkan earlier this year announced Tim Carpenter had been appointed its new managing director of construction, to expand the firm’s activity across the South east and northern home counties. The house builder then said it was aiming to double its turnover in two years.
The company’s accounts for last year said the firm had exchanged contracts or secured options on 10 development sites on which it hoped to deliver 956 homes over the next five years.
Paul Kimber, director at Durkan, said in the accounts the “house building division is now fully established’’, adding “the group is committed to growing the Durkan Homes brand and establishing ourselves as a developer of high-quality homes”.
Housing association Network Homes announced it had appointed Durkan to build 158 affordable homes near Central Middlesex Hospital last month.
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