John Sisk & Son has made a pre-tax loss and blamed the impact of spiraling energy costs on fixed-price contracts.
The contractor made a pre-tax loss of £2.5m in 2022, down from profits of £8.4m in 2021, while turnover fell from £383m to £351m.
Cash assets, reported at £25.8m, were down significantly from the company’s 2021 cash position of £57.2m.
Sisk, that is in talks to build Manchester City Football Club’s £300m Etihad Stadium extensionsaid price inflation and the pandemic had contributed to the disappointing performance, which was revealed this week in the company’s financial results for the year to December 31, 2022.
“Business performance during the year was affected to varying degrees by the effects of Covid-19 on projects that began construction before the costs of implementing new ways of working were fully understood,” said CEO Paul Brown.
“The business was also affected by the effects of price inflation, particularly in terms of the impact of energy costs on fixed price contracts.”
However, he sounded a more positive note for this year, predicting the business would return to profitability thanks to a “very strong” order book and a good outlook for 2024.
Sisk is delivering a new £220m precinct at Wembley Parkin north London, which will eventually include more than 2,000 homes, public space and a base for the Royal Philharmonic Orchestra.
Last year was also completed the mercianthe tallest residential tower in Birmingham, featuring 481 apartments over 42 floors, as well as a rooftop cinema and jogging track.
More recently, however, the firm has been embroiled in a £4m dispute with Berkeley Homes for liability for design defects in an east London bridge scheme.
