Builders merchants hit by downturn in sector

BUILDERS merchants James Burrell has seen a drop in turnover and fallen to a loss in what it said was a "rapid" and "almost impossible to predict" slump in the construction sector.

- GRAEME WHITFIELD

The Gateshead firm, which was established in 1877 and remains a family business, has filed accounts for the year ending October 2024 in which its turnover fell from £108.2m to £95.1m. Over the same period, a previous operating profit of just under £1.5m became a £1.1m loss.

The company said the downturn in construction activity came at the same time as a committed £1m+ spend on upgrading its IT facilities. It outlined a range of cost-saving measures it had introduced to mitigate the drop in trade and said that the early months of 2025 had seen an improvement in activity on the back of growth in construction output.

In the accounts, managing director Mark Richardson says: "The increase in the cost of living and wider economic slowdown that impacted the entire UK economy from late 2023 led to a rapid decline in construction activity. It was almost impossible to predict and to adapt quickly enough, particularly for a multi-generational family owned and managed business, who recognises its people as its biggest asset.