Equans reports fresh £29m loss 

Equans Regeneration has reported a £28.9m loss for 2024, taking its total pre-tax loss to £203.5m over the past three years.

The refurbishment specialist said it made a £22.3m operating profit in its “underlying trading performance” but admitted this was wiped out by £50.3m of costs relating to new-build housing work and restructuring costs.  

The company turned over £783m in the year ending 31 December 2024, a 14 per cent drop from the £907m reported a year earlier. Its £28.9m pre-tax loss was reduced from pre-tax losses of £38.9m in 2023 and £135.7m in 2022. 

During 2024 Equans Regeneration slashed its average number of employees by 15.5 per cent, from 3,015 to 2,546 – with its wage bill falling from £160.9m to £132m.

The highest paid director received a £254,000 pay packet, down from £314,000 a year earlier. 

Equans Regeneration was known as Keepmoat until its acquisition by Bouygues in October 2022. In October 2023 the firm announced it was going to stop building new homes – apart from in the student accommodation market – to instead focus on maintenance and refurbishment works. 

In a strategic report accompanying the latest financial results, director Colin Macpherson said the latest losses were caused by “particular pressure in the new-build sector due to a combination of cost increases, supply chain insolvency, legislative changes and unsustainably low levels of return across the industry”. 

However, he said that by the end of 2025, Equans Regneration will have delivered its final new-build housing schemes and will exit the new-build market. 

“The underlying trading performance of the company delivered solid results in 2023 and 2024, where after stripping out the results from the new-build workstream and the effects of winding down business activities in certain regions in both years, turnover remained at a fairly consistent level,” Macpherson said.

“Operating profit increased to £22.3m [in 2024] (2023: £16.2m) with operating profit margin improving to 3 per cent (2023: 2 per cent). The underlying trading performance is a reflection of the ongoing resilience and strength of the company’s workforce.

“The outlook for 2025 and thereafter is positive, and the business continues to grow and trade in line with directors’ expectations underpinned by a strong pipeline and good operational delivery of the current schemes.”

The company said major contract wins in 2024 included a two-year refurbishment and regeneration job with Birmingham City Council worth around £400m as well as a £94m contract with later-living operator Anchor to oversee repairs for over 18,000 homes in the East Midlands and North East England.