The average pre-tax profit made from contracting in the UK has fallen year-on-year, according to a major piece of annual research published by Building this Friday

The Top 150 Contractors and Housebuilders list, which compiles data from firms’ accounts and ranks them by turnover, shows the average pre-tax profit from contracting activities has dropped 9% year-on-year.

The overall drop in profit, once housebuilding profit is also taken into account, was 31%.

Pre-tax margins have fallen, with the average figure for firms in the top 150 standing at 2.4%, down from 3.9% the previous year.

The research also shows the top 150 companies generated a combined £118.4bn in firms’ most recent reporting year – which for the vast majority has a year end in 2023 or 2024. This figure, which includes housebuilders and contractors, is 2% up on the previous year. However, this has slowed from an annual increase of 9% the year before.

The Top 150 Housebuilders and Contractors table to be published on Friday is fully sortable by pre-tax profit and income and staffing costs and numbers. It also shows a split in activity.

We will also be publishing separate tables on the top 50 housebuilders, the top 50 contractors and the top 20 facilities management/services firms.

Building on Friday will publish in-depth analysis pieces on the state of the contracting market and housebuilding along with a ‘data-crunching’ piece revealing the firms that are the biggest risers and fallers in the rankings.