City Building has narrowed its losses significantly, despite falling turnover.
Newly published accounts for the Glasgow-based firm show an operating loss of £67,000 in the 12 months to 31 March 2024 – an improvement on the £14.5m decline the year before.
The contractor is incorporated as a limited liability partnership because it is a joint venture between Glasgow City Council and social housing company Wheatley Housing Group.
The overall profit available for division among its members rose to £7.6m, up from a £16m loss in its 2023 financial year.
The company said profitability was achieved through a reduction in administrative expenses, including changing actuarial assumptions used in valuing its defined benefit pension scheme.
However, turnover dropped from £162m to £154m.
Under its limited liability partnership arrangements, some £1.3m was paid to Glasgow City Council and Wheatley during the year but was accounted for as a reduction in turnover rather than a distribution.
City Building carries out repairs and maintenance operations, building and manufacturing.
Its directors said inflation and cost pressures made trading challenging during the year, but that demand remained strong for its construction and building services.
They added that skill shortages were mitigated by hiring 55 apprentices during the financial year. City Building opened its own training college in 2023.
The directors said decarbonisation work would be at the heart of its future plans, including facilitating the switch to lower-carbon heating systems.
“Our vision is one of nurturing future skilled workers, with these new apprentices already benefiting from additional support and training in renewable technologies via their own in-house college,” they added.
The company employs 228 apprentices out of a workforce of just under 1,700. Its directors noted that they would “benefit from the construction of their new world-class college [which was] supporting the wider construction sector and creating further employment opportunities to develop the next generation of tradespeople now and in the future”.
City Building’s cash in hand and at bank increased from £7m to £9.6m.