Housebuilder Durkan has incurred £9.3m of net exceptional costs relating to the remediation of fire safety issues on legacy projects.
The group has reported an increase in its consolidated turnover to £191.9m and a £4.1m increase in operating profit driven by the growth of its Durkan Homes and Durkan Regen businesses.
However, the group reported a pretax loss of £6.4m as a result of the fire safety remediation provisions.
Durkan Homes’ turnover for 2024 stands at £72.0m, up from £50.8m in 2023, with Durkan Regen posting turnover of £21.9m for 2024, up from £16.9m in 2023.
Durkan Group has recorded a net asset position of £46.7m and increased liquidity.
Danny Durkan, executive chairman of the Durkan Group, said: “I’m pleased to report an operating profit, with a strong balance sheet and liquidity for 2024. This financial position ensures we can continue to invest in our land pipeline to increase scale, as well as manage ongoing business risks.
“Like many of our peers, Durkan has been impacted by the cost of remediation work – activity we take very seriously and are committed to delivering.
“Despite these exceptional costs, the underlying health of the business is good. We expect to see this continue and improve year-on-year, driven by both the Durkan Homes and Durkan Regen businesses.
“We continue to focus on investing in our people, and in retaining the high levels of service and quality our customers and clients have come to expect.”
In its strategic report, the group also carried forward £14.8m of total provisions for legacy projects.
It said: “The board continues to review the group’s legacy building projects to ensure they meet building safety standards and continues to proactively engage with building owners and residents to ensure that necessary remediation works are delivered on a timely basis.”
