Durkan pulls out of contracting ‘because it doesn’t make enough money and is too risky’

Durkan has pulled the plug on contracting after more than 50 years saying it doesn’t make enough money for the risks involved.

The housing contractor had been switching its focus to its recently launched regen business and in its 2024 accounts admitted that it had made a number of redundancies at its contracting arm and was “assess[ing] the commercial risks of its design and build contracting business” because of “delays in obtaining regulatory sign-offs under the Building Safety Act”.

Now in its latest accounts for the year to November 2025, Durkan said it was drawing a line under the contracting business which had a turnover last year of £87m.

It said: “Following more than 50 years in the Contracting business, Durkan has taken the strategic decision to withdraw from the sector due to an increasing legislative and regulatory burden driving increased risk and declining returns.”

Hertfordshire-based Durkan, which operates across London and the Home Counties, said its remaining job being carried out by the business, a 330-homes contract at Kidbrooke Park in south-east London for Greenwich council, would wrap up this year.

Contracting has been the biggest part of the firm’s business with last year’s income – which was a 13% fall on the £100m it posted in 2024 – more than half of group revenue of £146m, which was down from £192m the year before.

In a note accompanying the accounts, Durkan said: “The Group is focused on growing the Durkan Homes and Durkan Regen brands, with anticipated growth in both divisions expected to underpin future turnover and profitability across the Group.”

Its regen business saw income rise 43% to £29m but its housing business saw income drop 58% to £30.5m, completing just 68 homes from 145 last time. “The reduction in volume [was] caused by delays in bringing new sites forward into production due to well publicised industry challenges in planning and capital availability from registered providers,” it added.

But it said: “The fundamentals of the housing market remain strong, with the demand for new homes continuing to outstrip supply. Durkan will commence two new sites in 2026, with a return to growth forecast in 2027.”

Durkan said that exceptional costs of £18.6m “relating to expenditure and increased provisions on legacy construction projects” meant that pre-tax losses widened to £11.2m from £6.4m last time. It said the amount if had set aside for legacy provisions was now £25.4m.

Year-end cash increased £1.5m to £36.5m.