The family-owned firm posted a turnover of \u00a395.1 million<\/b> for the year ended 31 October 2024, down 7.9 per cent from the previous year\u2019s \u00a3103.3 million.<\/p>\n
Its gross profit dropped 23.9 per cent <\/b>to \u00a38.4 million (FY2023: \u00a311 million), with a pre-tax loss of \u00a3429,659 \u2013 a 119.8 per cent <\/b>decline from the previous year\u2019s \u00a32.1 million profit.<\/p>\n
The firm were operating at a loss of \u00a3382,155 (FY2023: \u00a32.1 million profit), despite confirming a \u00a3122 million order book for 2024 and celebrated a record \u00a3180 million order book<\/a> in March.<\/p>\n Reduced gross margin, from 10.74 per cent to 8.87 per cent<\/b>, highlighted a challenging market, exacerbated by \u201chistorically high interest rates and sustained cost-of-living pressure\u201d.<\/p>\n According to the company\u2019s directors, these factors had suppressed demand for private housing, resulting in heightened competition and narrower margins for new contracts.<\/p>\n 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.<\/p>\n The company also shifted its focus toward social housing<\/b>, with the firm cautiously optimistic about recovery.<\/p>\n It forecasts a turnover of more than \u00a3120 million<\/b> next year, buoyed by the government\u2019s \u00a339 billion affordable housing programme<\/a>.<\/p>\n While cash reserves fell from \u00a38.2 million to \u00a33.3 million<\/b>, partly due to investments in plant depot facilities, M Lambe remains debt-free.<\/p>\n Director, Michael Lambe, said: \u201cWe are seeing cautious yet promising signs of recovery in 2025, shaped by greater economic stability and the promise of policy reform.<\/p>\n \u201cThe 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\u00a0<\/p>\n \u201cWe believe the revisions to the National Policy Framework including a return to mandatory housing targets and the introduction of the \u2018grey belt\u2019 will stimulate private housing delivery, albeit gradually.\u201d<\/p>\n Was this interesting? Try: Construction materials giant to close two \u2018unprofitable\u2019 businesses \u2013 bosses \u2018regret\u2019 impact decision will have on staff<\/a><\/b><\/p>\n