Concrete and piling specialist Morrisroe has posted a £6.9m loss in its latest accounts.
In results filed with Companies House on 4 August, the firm reported a £6.9m pre-tax loss for the year ending October 2022, while in the previous year it posted a £3.5m profit.
Turnover reached £203.9m in 2021/23 compared with £202.5m in 2020/21.
The firm said the results were impacted by material price rises on fixed-price contracts. As a result, it is now inserting fluctuation clauses into contracts or asking clients to share risk.
In its results, the company explained: “Pre-purchasing of materials at various points in the period provided some protection from the exposure to further price increases but this could not mitigate the full impact of reinforcement price increases which in the period rose by 130 per cent. Concrete prices increased by 26 per cent and plywood prices rose by 25 per cent.
“In view of the considerable price volatility experienced in the period we are now including negotiated fluctuation clauses in our contracts and/or seeking appropriate risk-sharing arrangements with clients.
“Additional commercial pressure in the period was caused by increasing labour costs due to skills shortages.”
Trading results for the period remained consistent, with sales of £204.7m, compared with £201.6m in the previous year. The firm forecasts sales of about £225m for the year ending October 2023.
Chief executive Brian Morrisroe said: “There have been challenges in the period with many of the commercial and inflationary pressures identified in the previous year continuing to impact us in this trading period.
“I am nevertheless positive about the future, with our exposure to fixed-price contracts signed in 2021 and 2022 having been completed in the trading period or expected to complete in the period ending October 2024.”
Recent flagship projects for the company include 40 Leadenhall, the Barking Riverside extension and the Tottenham Hotspur Stadium. Last year Morrisroe secured work on the Elephant and Castle town centre redevelopment (pictured), Camden Goods Yard and One Broadgate.