Official accounts for Glasgow City Council's construction firm, City Building, shows it has lost £1.2m in the last year.

According to a report by Scottish Housing News, this is the second time the company has made a loss since its establishment.

City Building was formed in 2006 and is the flagship of the Council's arm's-length external organisations (Aleos).

Despite the loss, Managing Director Graham Paterson said the company was a success.

-- Advertisement --

In financial accounts filed with Companies House, Mr Paterson said: "The construction industry continued to face the economic pressures of the ongoing recession in this financial year.

"However, the business continued to perform comparatively well and closed the financial year in what we believe is a strong position."

City Building employs more than 2,200 people and has one of Glasgow's largest programmes of apprenticeships. It made a loss despite working on Commonwealth Games contracts which included a new hockey centre and squash courts.

In addition, the firm provided the Council, which is both its owner and one of its biggest customers, with a "discount" of £3.2m in 2012/13, down from £5m in 2011/12.

(JP/MH)