Accounts show turnover for the Fife-based housebuilder fell from £48.5m in 2022 to £36.3m for the year to June 2023.

The Dunfermline firm, which had generated profits of £1.3m in 2022, said fixed-price contracts negotiated pre-Covid were significantly impacted by the material price rises.

Labour and material shortages and planning delays also affected the company’s performance.

Executive chairman Pete Bell said: “As a family business delivering homes for nearly 35 years, we take a long-term view of our company and the market.

“These results reflect the extremely difficult trading conditions facing the whole housebuilding industry post-Covid.

“We have an exceptional track record of working closely with a number of housing associations to deliver much-needed new homes.”

Throughout the financial year, Campion Homes progressed its Oak Bank development at Glenrothes and launched a new project in Crieff.

The company also marked a major milestone earlier this year with the completion of its Gauldry development on behalf of Kingdom Housing Association.

Throughout the financial year, Campion Homes delivered a total of 368 homes for housing association and local authority clients.

It also started construction on a further 137 new homes for the affordable housing sector.

It was named home builder of the year in the affordable housing provider sector at the Homes for Scotland Awards in May.

In addition, the business won the Excellence in Customer Service prize at the Scottish Home Awards.

Mr Bell added: “We delivered over 368 new homes for our affordable housing clients alone and won two major industry awards.

“We also have two exciting new private developments, with a diverse range of homes which continue to appeal to buyers, despite the current market conditions.”