Facade and curtain walling specialist Permasteelisa UK has cut its pre-tax loss by 40 per cent after “resolving issues around legacy projects”, according to its latest annual accounts.
The Italian contractor’s UK arm reported a pre-tax loss of £6.8m in the year to 31 March 2024, marking an improvement on the £11.2m loss from the previous year.
Permasteelisa – the second largest envelope contractor in the country, according to the 2024 CN Specialists Index – also highlighted “positive performance on some jobs” as a reason for its decreasing losses.
Negotiations on several projects “progressed well, enabling the business to achieve a sound level of order intake during the year”, directors said in their strategic report with the accounts.
But the firm still made a loss, partly due to the “ongoing impact of [unnamed] distressed projects”, they said.
Turnover rose from £132.8m to £146.2m, although Permasteelisa faced “inherent market challenges”, mainly around the ongoing impact of the Covid pandemic and “the cautious recovery measures implemented by the [UK] government”, according to the accounts.
“While the initial uncertainty and delays in acquiring new orders and progressing ongoing projects have largely subsided, the industry now contends with residual effects such as supply chain pressures and rising costs.”
Volumes and margins also remain under pressure from “intensified competition”, Permasteelisa said.
No dividend was paid, and the firm took out a £57,000 loan repayable within 12 months. It held no long-term bank loan debt.
Average monthly headcount increased from 85 to 89 staff, while the annual wage bill rose from £7.3m to £8.6m.
The contractor is in the middle of a restructure, which it hopes will result in improved overall project performance. In particular, the firm hopes to optimisie design and construction costs to reduce the impact on margins.
Looking ahead, the firm said it had achieved a “sound level of order intake during the year”, as negotiations on some projects progressed well. However, it added that it will continue to monitor market risks, such as fluctuations in interest rates.
This week, Permasteelisa UK’s parent firm also announced that it had expanded its presence in the US, after it acquired “key assets” belonging to Benson Industries, a specialist in the curtain wall and glass industry.
Permasteelisa Group said Benson, which is based in Oregon but also has offices in California and Washington, is recognised as “one of the premier custom curtain wall and external cladding subcontractors”. The acquisition, it added, will allow Permasteelisa to “grow its footprint in several key markets”.
Benson will operate as a standalone business within Permasteelisa North America.
