The business also experienced margin and turnover decline at an operational level due to economic headwinds.

Group turnover of £132m (2021:£137.5m) fell short of initial forecasts for the year with delays to project start dates due to cost inflation pressures and programme movements.

Durkan also took the decision not to progress with certain project opportunities due to the uncertainty around inflation and how the risk was shared through the supply chain.

The firm said it has already completed certain remedial works due to the Government’s fire safety compliance changes amounting to £6.8m, with a further £8.1m having been provided for future works.

Chairman Daniel Durkan said that the contracting team would be focused on enhanced profitability through two-stage tendering, which could result in lower volumes in future years.

Although the strategy to avoid single stage tenders has not adversely impacted orders so far with work secured or at bidder stage totalling £385m.

He added there would also be an increased focus on the refurbishment division after recent framework wins for housing associations L&Q and Hyde for 2023 and beyond.

“The board expects significant revenue and profit growth from this sector going forward as our core client base seeks to invest significant capital in the refurbishment and retrofitting of historical housing stock,” said Durkan.

Headcount over the year to November 2022 rose by 22% to 193 staff.