Irish-owned construction group Durkan Holdings Ltd is scrutinising homes it has built in Britain for possible safety problems.
The UK is overhauling fire safety laws for apartments and houses following a fire that killed 72 people in Grenfell Tower, London, and wants construction companies to bring existing buildings into line with the new rules.
Durkan Holdings Ltd, owned by members of the Durkan family who are well-known in Irish construction, said it is reviewing homes it has already built for “any defects or potential issues” that it may be obliged to remediate.
Chairman Daniel Durkan said in his annual statement for the British-based business, covering the 12 months to end-November 2021, that the business had a substantial number of homes that require continual review because of issues that emerged following the Grenfell tragedy.
“The nature of any potential defect may vary and include issues associated with specific workmanship defects, and cladding and fire stopping concerns,” he said.
“The board continues to assess each building on its own merits and assess any steps that need to be taken by the group to address any issue.”
Operating margins
Durkan Holdings has secured contracts for, or is preferred bidder on, work totalling £325 million (€387 million), according to its chairman. He notes that the business is focused on inflation, but said that operating margins have remained healthy.
The company acknowledges that the continued fallout from Brexit, the war in Ukraine and interest rate increases all pose risks to the business.
Durkan Holdings builds homes under contract for British local authorities and housing associations, as well as affordable and private home construction. The business focuses on the UK capital, London, and southeast England. During its 2021 financial year, Durkan bought or secured options on 10 sites with space for 956 new homes.
Durkan ended its financial year with £41.8 million in cash, against £46 million 12 months earlier. Revenues totalled £137.5 million, up from £102.5 million in its 2020 financial year.
Contracting revenues accounted for £124.17 million of Durkan’s total last year, while residential sales came to £13.26 million. Profit for the financial year was £835,00, against £1.8 million in 2020.
The company paid shareholders an interim dividend of £2 million, but the board did not recommend a final dividend.
Mr Durkan said the British housing market is performing strongly. “The government’s decision to suspend stamp duty and to allow the sector to remain open during periods of Covid-19 restrictions has supported confidence and supply levels,” he adds.
“Pent-up demand created by the lockdowns, coupled with changing working patterns and lifestyle choices, has underpinned demand for new homes.”
He adds that the business is confident that the outlook for housing remains positive.
“Although mortgage availability has remained unaffected during this period, lending criteria remain tight, and affordability can still prove challenging for buyers with low levels of equity – something that may be compounded by rising interest rates,” Mr Durkan said.
