The building and fit-out specialist, which operates in the high-end London and wider south east market, slipped to a £137,000 loss in the year to April after making more than a £1m profit in the prior year.

While turnover for the year was up 28% to £87m, it was lower than forecast the previous year, due to fewer good opportunities and an increase in competition.

In the latest results, Michael Curtis, commercial director, said:  “The continued difficulties that our suppliers and subcontractors have experienced with increased material costs and, in part, the losses they incurred during the Covid pandemic has meant that a number of companies that we were employing went out of business.

“As a consequence, we have experienced both delays and additional costs which has had a material effect on our profitability.

“Unfortunately, this has contributed to the company reporting its first operating loss in its 26 years of trading.”

He added:  “The board is aware that this is indicative of the industry in general at present, however we are fortunate that this was only a small loss. As a consequence, the effect to our balance sheet has been minimal.”

Turnover for the year ending April 2024 is expected to be similar to last year, at around £80-90m with margins expected to remain relatively low.

Curtis added: “Although trading conditions have been difficult, we have managed to expand our client base and we will continue to focus our efforts on London and the South East.

“We are also now actively involved in some new sectors which should provide us with a more diverse portfolio going forward and also generate further work opportunities.”