The North East and Yorkshire group has shed some jobs and two locations amid a downturn in the sector but says there should be improvements ahead
Builders’ merchant James Burrell says it continues to battle through tough conditions in the construction market but is determined to bounce back.
The North East-based group, which also has a number of branches in Yorkshire, has closed two sites between 2024 and 2025, and shed more than 35 jobs in the same time. Bosses at the materials retailer say an anticipated recovery in the construction sector since its steep 2023 decline has not materialised and has required “tough decisions” of the family-owned firm.
Newly published accounts covering the year to the end of October show James Burrell built turnover from £95.1m to £96.3m as it returned to operating profit of more than £566,000, having posted an operating loss of more than £1.1m the year before. Pre-tax losses over the same period narrowed from £2.06m to £486,789.
Writing in the accounts, managing director Mark Richardson said: “The anticipated recovery across the construction sector following a sharp decline in 2023, has yet to materialise. The cost-of-living effects are still prevalent across society and UK businesses are still having to deal with elevated inflationary and interest rate effects.
“For a multi-generational family owned and managed business, who recognises its people as its biggest asset, this has meant tough decisions have been necessary to balance the conflicting priorities of maintaining an acceptable financial performance, whilst supporting the employee base who serve the business so faithfully.”
He added: “Although we are not where we want to be, there is a feeling that we are moving back in the right direction again. We are faced with a higher cost threshold than we have previously been used to after recent material price inflation, tax rises and increases in the living wage. But we have made the necessary adjustment to right-size the business accordingly, stripping out nonessential costs and process inefficiencies, aided by the implementation of our new IT system.
“Despite our marketplace remaining subdued and uncertainty continuing to cloud the present position, we believe there will be improvement ahead. Our strong financial base and continued reinvestment in the business should ensure that James Burrell will continue to prosper and to take advantage of new opportunities as and when they arise.”
The firm said the challenging trading conditions of the last three years showed no signs of abating in 2026, and that despite inflation having eased, interest rates remain high and economic growth was stagnant. Bosses expressed disappointment in the trading performance despite the small improvements reported, but said the firm remained resilient and “determined to bounce back” when demand recovers.
One of key factors contributing to those tough trading conditions has been sluggish housebuilding activity. Mr Richardson said regular government pledges to encourage the building of new homes had failed to come good, pointing to problems associated with higher interest levels, delays in the planning system, a lack of help-to-buy type incentives and red tape facing developers








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