The housebuilder recorded a pre-tax loss of £4.4 million for the financial year ending 30 June 2024, a stark reversal from the £1.6m pre-tax profit seen in the previous year.

The Inverurie firm’s turnover plummeted by over £20m, falling from £60m in 2023 to £39.2m in 2024.

Finance director Scott Martin attributed the “challenging market conditions” directly to the Bank of England’s base rate remaining above 5% throughout the period, which significantly dampened demand in the housing market, The Press & Journal reports.

This downturn led to a reduction in the company’s net assets, which fell from £22.5m to £18.1m. The firm’s workforce also decreased, with an average of 78 staff employed during the year, down from 86 in 2023.

During the accounting period, Kirkwood Homes completed sales at developments in Stonehaven, Countesswells, Inchmarlo, Sauchen, Alford, Blackdog, and Drumoig. The company also continued sales at its major Balgillo Heights development near Dundee.

Despite the loss, the company expressed optimism for the future. A spokesperson noted that market conditions have “improved significantly” since the period covered by the accounts, pointing to a reduction in interest rates and greater “political stability”.

Kirkwood has since launched new developments in Colinsburgh, Fife, and in Perth, and continues to pursue new sites in its core markets of Tayside, Aberdeenshire, and Inverness.