Briggs & Forrester’s revenue has halved because of the impression of fixed-price contracts and inflation.

The agency, the fifth largest M&E specialist within the UK and ranked 58th within the CN100 record of high contractors in 2022, noticed its pre-tax revenue fall from £3.2m to £1.6m within the yr to 31 October 2022.

Turnover decreased barely to £229.2m, from £234.2m the earlier yr.

Group chair and chief govt Paul Burton mentioned in a press release issued alongside the accounts: “It has been a very troublesome yr with [the] excessive ranges of inflation skilled impacting on the profitability of a few of our fixed-price contracts.

“We additionally skilled some important undertaking delays the place we have now not at all times been in a position to get well all of our workers prices.”

The worst-hit a part of the enterprise was its Engineering Providers arm, which posted an working lack of £1.6m.

Referring to this, Burton mentioned: “The monetary consequence was clearly disappointing, impacted considerably by inflation on fixed-price contracts that have been secured previous to the conflict in Ukraine and the ensuing excessive inflation.

“There have been additionally some important undertaking delays, initially attributable to Covid disruption early within the yr after which latterly on account of provide points from different trades the place our further prices couldn’t at all times be recovered.”

Burton didn’t specify which tasks have been delayed, however mentioned that “inflationary safety measures” have been now in place for many of its contracts and that it was beginning to see inflation ease out there.

Briggs & Forrester decreased its money at financial institution and in hand to £7m in the course of the interval, down from £18.9m in its 2021 monetary yr. The corporate mentioned it used its financial institution facility to assist working capital at occasions in the course of the second half of the yr till the top of October 2022.

In its outcomes assertion, the agency added that it had since secured a brand new, ongoing £4m commerce mortgage facility.

Common workers headcount decreased to 874 in the course of the interval, down from 897. The corporate mentioned it expects to extend its workforce once more as volumes improve in direction of the top of 2023.

“We proceed to keep up a extremely expert and skilled workforce and are very happy with our enviable document in respect of workers retention,” Burton added.

In early 2021, the agency was one in every of a spate of contractors that turned employee-owned trusts. It was the second-largest contractor to transfer to the mannequin, incentivised via the tax  system, between 2020 and 2022.