Its annual accounts for the year ending 31st March show profit before taxation at £11m, a fall of 44% on the year before, while turnover sank by 18% to £167.1m.

Stephen Conway, chairman at Galliard, attributed this to being subject to residential property developer tax and the developer remediation contract, which meant the group had to commit to remediate life-critical fire safety issues on all buildings above 11 metres developed by the group in the past 30 years.

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“A provision of £30.7m has been included in this year’s financials to support the remediation works over the coming years,” he said.

Stephen added: “The provision reflects the current best estimate of the extent and future costs of works required. 

“Alongside the remediation provision we are now also subject to the residential property developer tax which came into effect on 1st April 2022, to fund remediation of residential buildings above 18 metres and applies to a majority of group profits above a £25m annual allowance at the rate of 4%. 

“This is in addition to the rate of corporation tax increasing from 1st April 2023 to 25%.”