Turnover fell 8% to £95m for the year to 31 October 2024, down from £103m.

The firm posted a pre-tax loss of £430k compared with a £2.2m profit before amid weakening housing demand, which in turn drove increased competition and tighter pricing.

Despite the downturn, Lambe maintained operations across its Birmingham and Derby offices, while consolidating pre-construction and commercial teams under group directors to improve efficiency.

Cash at bank dropped to £3.4m from £8.3m, though the order book grew to £122m, up from £95m.

Managing director Michael Lambe forecast the firm would deliver record revenue this year as demand from the social housing sector strengthens.

He said:”We are seeing cautious yet promising signs of recovery in 2025, shaped by greater economic stability and the promise of policy reform.

“The business has weathered the period of suppressed demand and slower build programmes in the private housing market and there are tentative signs of increased sales volumes buoyed by a steady decline in mortgage interest rates and the more stable macroeconomic environment.

“We believe the revisions to the National Policy Framework including a return to mandatory housing targets and the introduction of the ‘grey belt’ will stimulate private housing delivery, albeit gradually.

“Our strategic pivot towards social housing in recent years has helped revenues recover and the business expects turnover to exceed £120m in the year ending October 2025.”