Subcontractor failures have pushed Blenheim House Construction into its first loss after 26 years of trading.
The Surrey-based contractor made a pre-tax loss of £169,000 in the year ending 30 April 2023, down from a profit of £1.1m for the previous period.
Company director Michael Curtis said the firm’s profitability was hit by a number of subcontractors and suppliers going under, causing project delays and additional costs.
He said the firm’s suppliers ran into difficulties as a result of material cost increases brought on by the war in Ukraine and losses incurred during the Covid pandemic.
Although the firm increased its turnover from £67.8m to £86.6m, this figure was lower than last year’s forecast. Curtis attributed the lower-than-expected rise in turnover to a reduction in opportunities and an increase in competition.
The challenging economic environment also hit Blenheim’s cash reserves, which decreased from £9.7m to £6m over the year. It increased its headcount by three, employing an average of 84 staff over the financial year.
The firm expects a similar turnover of around £80-£90m and low profit margins in the year ending April 2024.
Blenheim House Construction was established in 1996 and focuses on commercial and mixed-use developments worth up to £30m in London and the South East.
The firm is currently working on several prestige projects in London, including a £27m office refurbishment in the West End and a £29m office refurbishment in Soho.