Public sector spending cuts are having an impact on the business and profits this year will be down on last year.
Lakehouse’s financial year started on 1st October. In trading update, Lakehouse said that since then it had continued its strong bidding success, increasing its framework contracts by 22%, from 181 to 221, and bedding in the five acquisitions made in 2015.
However, with social landlords having to reduce rents by 1% per annum for the next four years, cost reductions within client organisations have led to regeneration work being stalled and insulation contracts having to be bid at lower margins.
The UK domestic smart metre roll-out programme – an important element of Lakehouse’s strategy – has also been hit by delays and the company no longer expects it to make any contribution this financial year.
Lakehouse floated on the London Stock Exchange in March 2015 and in the year to 30th September 2015 made £3.2m pre-tax profit on revenue up 12.5% to £340.2m.
Executive chairman Stuart Black said: "Following our successful maiden results as a public company, we have seen recently, a number of headwinds facing our markets come together to impact our business. I am confident that having built a group with a range of services that allow us to help our clients address their operational and financial needs, we remain well placed to overcome these challenges."
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