Durkan carries out a security review of buildings in the UK in the wake of the Grenfell fire

Irish-owned construction group Durkan Holdings Ltd is investigating houses it has built in the UK for potential safety issues.

The UK is revising fire safety laws for flats and houses after a fire that killed 72 people at London’s Grenfell Tower and is asking builders to adapt existing buildings to the new rules.

Durkan Holdings Ltd, owned by members of the Durkan family who are well known in Irish construction, said it inspects houses already built for “defects or potential problems” that it may need to fix.

Chairman Daniel Durkan said in his annual statement for the UK-based company, covering the 12 months to the end of November 2021, that the company had a significant number of homes closed due to problems that arose in the wake of the Grenfell tragedy, a require continuous review.

“The nature of a potential defect can vary and can include issues related to specific workmanship defects, as well as paneling and fire safety concerns,” he said.

“The board continues to evaluate each building on its own merits and evaluate any steps that need to be taken by the group to address issues.”

Operating Margins

Durkan Holdings has won or is the preferred bidder for works for a total of £325m (€387m), according to its chairman. He notes that the business is focused on inflation but said operating margins have remained healthy.

The company recognizes that the ongoing fallout from Brexit, the war in Ukraine and interest rate hikes all pose risks to the company.

Durkan Holdings builds houses for UK local authorities and housing associations, as well as affordable and private housing. The business is concentrated in the British capital, London and the south-east of England. During fiscal 2021, Durkan purchased or optioned 10 locations with space for 956 new homes.

Durkan ended the financial year with £41.8m in cash, up from £46m 12 months earlier. Revenue totaled £137.5m, up from £102.5m in FY2020.

Contract revenue accounted for £124.17m of Durkan’s total last year, while home sales reached £13.26m. Profit for the year was £835.00 versus £1.8m in 2020.

The company paid shareholders an interim dividend of £2million, but the board did not recommend a final dividend.

Mr Durkan said the UK housing market is performing strongly. “The government’s decision to suspend stamp duty and allow the sector to remain open during times of Covid-19 restrictions has boosted confidence and supply levels,” he adds.

“The pent-up demand created by lockdowns, coupled with changing work patterns and lifestyle choices, has underpinned demand for new homes.”

He adds that the company is confident the outlook for housing remains positive.

“Although mortgage availability has been unaffected during this period, lending criteria remain stringent and affordability can still prove challenging for low-net-worth buyers – something that rising interest rates can exacerbate,” Mr Durkan said.

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