Accounts filed at Companies House shows that for the year ended 31st October 2017 Surgo Construction’s pre-tax profit was down more than 40% at £351,000 (2016: £593,000) on turnover down 6% to £28.7m (2016: £30.6m).
Turnover is expected to dip a further 8% or so in the current year, the company said.
Chairman Ian Walker wrote in his report: “2017 was a challenging year for Surgo Construction as it was for many of our competitors in the region. Keeping our order book buoyant required a major and concerted effort by our team. Our tender success rate continued to be at a good level but a periodic lack of suitable enquiries and more particular delays or cancellation of some projects after tender success has meant our sales turnover at £28.7m was less that out anticipated budget.
“Profitability whilst down on expectation has to some extent held firm and we finished the year with another positive return.
“To some extent the trend has followed into the new financial year, particularly with delays to project start dates, but given the appalling weather conditions during the first three months of the year progress would have been difficult in any event particularly with our new build housing projects.
“That said, our recent forecast review reflects a strong position to move forwards with. Sales turnover for the year to 31 October 2018 is anticipated at £26.2m with 85% of that contracted and on site.”
Business development director Jeff Alexander said: “There is continuing uncertainty in the regional construction market, but we remain increasingly confident about the future, thanks to some recent project wins which include two larger scale residential schemes in Northumberland as well as a commercial/research project at Netpark, County Durham for CPI and a new build project at Collingwood College for Durham University.
“These four projects alone account for almost £35m of turnover, which should ensure that for the remainder of this financial year and beyond, we continue to be successful in achieving our objectives.”