Losses at Downing Construction have deepened despite the contractor more than doubling its revenue.
Provisions for remediating cladding and fire safety issues on completed jobs were the largest items blamed for the downturn.
Newly released results for the year to 31 March 2024 show the firm made a pre-tax loss of £5.8m, compared with a £3.5m loss in its previous financial year.
Its 2023 loss was originally stated as being just £963,800, but with the new set of results the firm also revised its previously issued accounts.
Company directors said Downing Construction faced “significant challenges” on a 324-bed student accommodation scheme called the Meadows in Edinburgh, leading to cost overruns of £2.4m.
Explaining the move to revise its 2023 results rather than add this to the 2024 figures, they said: “Significant challenges had been faced on site over the course of the contract, causing delay and disruption to the programmed schedule and ultimately leading to substantial cost overruns.
“At the time of finalising the accounts for the year ended 31 March 2023, costs that subsequently crystallised in the current year but which, on balance, could have reasonably been foreseen at that time had been under-forecast, due to inaccurate judgements.”
Turnover grew from £44.5m to £107.2m in the period, due mainly to its work at Square Garden
