The Liverpool-based contractor posted a pre-tax loss of £8.7m for the year to March 2025, widening from a £5.8m loss the previous year, as turnover fell 38% to £66m.
The downturn reflects a lack of new starts, with activity largely limited to completing existing schemes including the 1,287-bed Square Gardens co-living project in Manchester and a 45-storey tower delivered in September.
Downing increased provisions to £17m for historic cladding and fire safety issues, up from £13m a year earlier, with further increases already flagged post year-end.
The group said most of the £5.8m gross loss in its construction arm was driven by remediation costs tied to legacy contracts, alongside £2.4m of overruns on a student job in Edinburgh.
Cash reserves fell by £8.5m to £13m, although the business remains debt-free following a £6.5m shareholder cash injection during the year.
Looking ahead, the firm is pivoting away from new build delivery to focus on remediation through its subsidiary George Downing Construction, with expectations of recovering some costs through enhancement works.
