The provision in accounts for the year to March 2023 tipped Galliard Group £13m into the red after turnover also fell 18% to £167m in the face of falling workloads.

Galliard said it had already completed recladding works across 11 buildings comprising 1,100 homes in the London Borough Greenwich at no added cost to homeowners and estimated future legacy building works would be completed over the next 5-8 years.

Chairman Stephen Conway said Galliard still delivered a strong underlying performance even against the backdrop of a deteriorating wider economy.

“We have achieved pre-tax, pre-exceptional profits of £11m, which remains in line with expected forecast albeit a 44% reduction on the prior year results of £19.8m.

Conway said Galliard was adjusting its focus in the present market towards private rental housing projects.

“Where the residential apartment buying market has cooled, we have turned our hand to investing in the new emerging market of PRS/BTR and have continued to link up with new JV partners with more experience in this field to lead us into a new emerging side of the business.

“Our development at Grafton Way in Ipswich, forwarded funded byAviva is now well underway with nother potential products with news partners in the development pipeline.”

He added: “This year we are also progressing construction schemes including a senior living develolment in Henley as well as looking to potentially expand into the holiday lodges and hotel market in Yorkshire.”