Stride Treglown saw its pre-tax profits fall by more than half during 2017, bringing to an end three years of strong growth for the practice
The company’s financial statement for the year to 31 December 2017 showed profits before tax were £417,711, down from £867,146 the previous year.
Turnover fell slightly from £22 million to £20.1 million over the period.
Stride Treglown director David Hunter attributed the dip in performance to ‘a number of sizeable projects slowing up’. These included schools projects in Wales as well as the firm’s Critical Treatment Hospital project in Hampshire, which was scrapped by health authorities at the end of last year.
Hunter also pointed to a ‘tailing-off in confidence’ in the construction industry since the Brexit referendum.
He said: ‘There is a general hesitancy that a lot of us are seeing and we expect to be flat-lining again in 2019; although next year might see an improvement.’
The practice, which recently moved up two places in the AJ100 rankings to 13th, also said that tightening margins for contractors and their suppliers would continue to exert pressure on fee levels.
In response, the 330-strong company identified a need to ‘drive efficiency through smarter working and improved cost monitoring on projects’.
The collapse of contractor Carillion has reinforced the need to take a ‘more proactive approach to debt recovery’, the company said.
Hunter said the practice was still receiving inquiries by developers of mixed-use projects and added that the English schools pipeline continued to offer opportunities.
During 2017, a team featuring Stride Treglown was chosen for a new £50 million cruise liner terminal on Princes Parade in the heart of Liverpool’s UNESCO World Heritage zone.