The figure in its latest annual accounts for the year ending March 31, 2023, follows an £18.5m deficit in the previous year, and comes despite a slight increase in turnover from £161.9m to £162.2m.

City Building attributed the loss to an “extremely challenging trading environment” driven by inflationary price increases on materials and subcontractor costs. Despite this, the company reaffirmed its commitment to delivering value for money while balancing profitability with supporting partners and minimizing cost pressures on customers.

A spokesperson for City Building clarified that the reported loss stemmed from a non-trading accounting adjustment related to pension fund liabilities. Before this adjustment, the company had actually generated a trading surplus of £7.45m, which was distributed between Glasgow City Council and Wheatley Group.

The company also highlighted its ongoing investment in workforce development, having recruited 60 craft apprentices and hired 61 former apprentices as tradespeople. It completed the construction of its own training college to help develop the next generation of skilled workers.

Despite the financial challenges, City Building expressed optimism about the industry’s future, citing the increasing focus on sustainability and the importance of apprenticeships in addressing labour shortages. The company expanded its workforce, with its average monthly headcount rising from 1,694 to 1,724 employees.

Financially, City Building’s cash reserves fell from £9.5m to £7.1m, but the firm managed to reduce amounts due to creditors within 12 months from £40.3m to £26.6m. Notably, the company reported no outstanding bank loan debt.