Darwin Group halves turnover and posts £3m loss on NHS modular jobs

Darwin Group's turnover almost halved to £72m in 2025 from £140m the previous year, as cost overruns on large NHS modular healthcare projects pushed the Portakabin-owned contractor into the red.

The Telford-based offsite healthcare specialist plunged to a £5m operating loss from an £8.6m profit in 2024, according to its latest accounts. Pre-tax performance swung from a £9.2m profit to a £3.2m loss.

Directors blamed the reversal on several large permanent modular healthcare projects that ran into operational delivery problems and cost overruns. The setback has prompted Darwin to sharpen its focus on smaller, less complex modular buildings and the hire market within the wider Portakabin group.

The retrenchment marks a sharp course correction for a business acquired by Portakabin in 2023, when the modular giant pushed deeper into the NHS market.

The workforce has contracted alongside the order book. Average employee numbers fell to 174 during the year from 200, while the contracts workforce dropped from 172 to 145.

Directors said the business would maintain its commercial focus on UK healthcare while concentrating on smaller modular sales and hired space.

The strategy shift signals that complex permanent modular healthcare work — the very segment that attracted Portakabin's acquisition — will play a reduced role in Darwin's future, as the firm bets on simpler, faster-turnover work to restore profitability.