Tide sees pre-tax profit drop by almost a third amid sector ‘challenges’

Tide Construction has seen its pre-tax profit plunge by almost a third, according to its latest accounts.

It is the second year running the London-based company, which specialises in building high-density residential schemes using modular methods, has reported a drop.

In its accounts for the year ending 31 August 2024, Tide’s pre-tax profit decreased from £7.1m to £4.9m. The previous year it experienced a 36 per cent drop from £11.1m to £7.1m.

Its turnover for the period dipped by 5 per cent from £197.2m to £187.1m.

In a directors’ statement, the firm said: “The directors are pleased with the performance of the company during the year given the challenges faced by the construction sector due to the macroeconomic environment.

“Our results show that while the company is not immune to these challenges we remain profitable.”

However, it said delays by the Building Safety Regulator in deciding gateway two applications were impacting its business.

“The impact for the company means that these developments are ultimately affecting project timelines and start dates for the coming year, which is causing significant uncertainty and creating many challenges within the industry,” the statement said.

The accounts revealed the company had a contingent liability of £350,000 arising from a prior period of compliance query but expects this to conclude by the second period of 2025.

In the period it paid out £18m in dividends compared with £23m the year before.

Its cash in bank rose to £12.4m from £10.4m the previous year and it reduced its staff from 40 to 39, which resulted in its wage bill dropping to £3.6m from £3.8m.

According to its website, Tide has delivered £3.5bn of real estate, installed more than 20,000 volumetric units and created over 10,000 student bedrooms. It adds it has started work on more than 3,500 new homes since 2023.

The company completed its College Road development in Croydon, south London, during the last quarter of 2023 after a 28-month construction programme. At 163 metres, the scheme is Europe’s tallest volumetric project, featuring towers standing at 35 and 50 storeys (pictured).