The family-owned firm posted a turnover of £95.1 million for the year ended 31 October 2024, down 7.9 per cent from the previous year’s £103.3 million.

Its gross profit dropped 23.9 per cent to £8.4 million (FY2023: £11 million), with a pre-tax loss of £429,659 – a 119.8 per cent decline from the previous year’s £2.1 million profit.

The firm were operating at a loss of £382,155 (FY2023: £2.1 million profit), despite confirming a £122 million order book for 2024 and celebrated a record £180 million order book in March.

Reduced gross margin, from 10.74 per cent to 8.87 per cent, highlighted a challenging market, exacerbated by “historically high interest rates and sustained cost-of-living pressure”.

According to the company’s directors, these factors had suppressed demand for private housing, resulting in heightened competition and narrower margins for new contracts.

In response, the third-generation family business streamlined operations by consolidating its pre-construction and commercial departments under group directors, invested in technology, and focused on cost control measures.

The company also shifted its focus toward social housing, with the firm cautiously optimistic about recovery.

It forecasts a turnover of more than £120 million next year, buoyed by the government’s £39 billion affordable housing programme.

While cash reserves fell from £8.2 million to £3.3 million, partly due to investments in plant depot facilities, M Lambe remains debt-free.

Director, Michael Lambe, said: “We are seeing cautious yet promising signs of recovery in 2025, shaped by greater economic stability and the promise of policy reform.

“The business has weathered the period of suppressed demand and slower build programmes in the private housing market and there are tentative signs of increased sales volumes buoyed by a steady decline in mortgage interest rates and the more stable macroeconomic environment 

“We believe the revisions to the National Policy Framework including a return to mandatory housing targets and the introduction of the ‘grey belt’ will stimulate private housing delivery, albeit gradually.”

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