The firm topped turnover of £30m in latest accounts, but said getting projects to site is proving more difficult
Directors at construction compnay Surgo have warned of potential headwinds following signs their clients are waivering as Brexit negotiations start.
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The Newcastle-based building contractor has issued accounts for the year ended August 31 2016, hailing another successful year for the firm as turnover was down by 8% on the last year but reached "a very credible" £30.6m.
Operating profit topped £583,000, down on last year's £992,000, which the firm said came in part to the additional costs of reinforcing the 80-strong team for the future.
Director Jeff Alexander admitted the climate for the firm was "challenging", through he said a number of recent wins had boosted the company.
In a report alongside the accounts, chairman Ian Walker said he didn't believe the firm's results give a true picture of a construction tough market, and that there seems to be some uncertainty within the industry.
However, he said: "Whilst enquiry levels remain relatively strong, getting projects to she is proving much more difficult and seems to demonstrate a growing uncertainty from some of our clients as Brexit negotiations commence.
"Almost certainly these delays in project commencement will affect the business going forward and we are already seeing a considerable shortfall in sales turnover for the current year.
"That said, there remains considerable potential to bring the year back on track and looking forward to ensure groth beyond this current period, and our budget for this current year has been set to reflect that optimism.
"The team remain acutely aware of the current challenging environment in which we do business but the board believes we are equipped to meet these challenges and build on our success. Our exeptioanl people are fundamental to our success this year and their continues support and enthusiasm will continue to carry us forward."
Off site, Mr Walker said that the year had been a difficult one in accounting terms, after a new software system was installed in an "extremely frustrating operation".
Looking ahead, managing director James Walker detailed future work in the accounts.
Among the projects the firm is currently working on is the £3.8m redevelopment and refurbishment of Newcastle University's Hatton Gallery, and the first phase of converting a 200-year-old property in Durham city centre to luxury apartments and student accomodation.
Mr Alexander said: "Whilst the climate remains challenging, as reported in the chairman's statement, I am pleased to say that we have recently had a number of successful tenders and this gives us every confidence that we will enjoy another good year."