Delayed projects halt Surgo Construction growth

Aaron Morby 1 week ago
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North east contractor Surgo Construction saw revenue slide last year after being hit by several delayed project starts.

Chairman Ian Walker says outlook is brighter for this after challenging 2018

Turnover at the Newcastle based firm fell to just £19m last year from £29m in the previous 14-month period in 2017.

The fall in activity saw pretax profit drop to £57,000 from £351,000 previously.

Chairman Ian Walker said: “Fears about Brexit and what it may entail have generated an underlying lack of confidence both within the industry and on the part of funders.

“This has resulted in several projects being delayed due to financial setbacks or often just through fear of what may be around the corner.”

Looking ahead, Walker said: “On the plus side, we have seen some good progress in tendering and while issues still exist with delayed commencement dates, recent awards have moved more quickly to site.”

The firm recently won a trio of contracts worth around £11m. This includes a £6m+ scheme in Ponteland to refurbish 23 existing listed buildings to create modern homes.

It is also building 16 new homes for Buchanan Estates in Southfield and at Durham University Surgo will upgrade student accommodation for Trevelyan College.

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