Kent contractor improves profit despite building safety regs slowing down high-rise starts

Kent contractor RGCM shrugged off building safety delays to see pre-tax profit jump by more than half, the firm’s latest accounts reveal.

The residential and student accommodation specialist, which is part of the RG Group, said pre-tax profit was up 59% to £7.3m last year.

But income fell 8% to £289m and in a note accompanying the accounts the firm said: “During 2025, RGCM submitted a number of Gateway 2 applications on behalf of clients and had anticipated approvals being granted during the year.

“However, industry-wide delays within the approval process resulted in a number of projects being deferred. These delays have impacted the commencement of several schemes and are expected to constrain growth during 2026.”

It added the knock-on effect was being felt across the sector, warning: “The consequences extend beyond the company itself and are affecting the wider construction supply chain, creating uncertainty around project commencement dates, labour planning and future investment decisions.”

The accounts, which were signed off at the end of last month, said “the pace of developments starting on site during 2026 is expected to be influenced by the timing of Building Safety Regulator approvals for higher-risk buildings”.

But the firm added: “The company enters 2026 with a strong order book, a loyal client base, an experienced management team and a robust financial position.”

It said year-end cash was up to £51.5m from £31m.