Company says it is hoping to recover money through negotiations with contractors

The UK business of Italian cladding firm Permasteelisa slumped into the red last year with the firm blaming the rising cost of completing jobs and inflation for the loss.

The firm, whose jobs include the Google HQ redevelopment at King鈥檚 Cross being built by Lendlease and Multiplex鈥檚 One Leadenhall scheme in the City of London, racked up an 拢11.2m loss in the year to March 2023 from a 拢1m profit last time.

In a note accompanying the accounts, which were signed off just before Christmas, Permasteelisa said inflation had 鈥渘egatively impact[ed] project margins across the business鈥�.

one leadenhall 2

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Permasteelisa is working on the One Leadenhall tower, which is being built by Multiplex for developer parent Brookfield

It added: 鈥淚ncreased execution costs for some complex projects in the UK have also led to a reduction in margins. Management is committed in the negotiation with the main contractors to retrieve the extra costs through change orders and variations, which are not accounted for in fiscal year 2023 since they are still to be formalised.鈥�

Permasteelisa said its order book during the period was 拢81m and said it was 鈥渃onfident in continuing this trend and generating good order levels within the next year鈥�.

Turnover at the firm, which is headed up at a group level by former Kier building boss Liam Cummins, was down 3% to 拢133m.

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