Firm winding down three non-core businesses this year and next
Careys said the cost of the covid-19 pandemic hit its bottom line by close to 拢10m last year in its latest accounts filed at Companies House.
The Wembley-based firm, which is working on the One Nine Elms twin-tower scheme being built by Multiplex for Chinese developer Dalian Wanda, said turnover, reduced by the pandemic, and the cost of paying furloughed staff hit it for an estimated 拢9.6m.
Careys, whose business also includes dry lining firm BDL, which is working on Lendlease鈥檚 Elephant Park residential scheme and has also won work on Mace鈥檚 Paddington Cube scheme in west London, added that it claimed 拢9.1m from the government鈥檚 Coronavirus Job Retention Scheme initiative 鈥� although the total cost of paying furloughed staff was 拢13.3m.
In its results for the 18 months to September 2020, the firm said: 鈥淐ovid significantly impacted revenue during the last two quarters of the financial period. The impact was deeper for our Scottish and Irish sites where more stringent government-imposed lockdown measures were introduced.鈥�
It said that a restructuring programme, which will see three non-core businesses closed this year and next including demolition firm TE Scudders and Carey New Homes, had cost it a further 拢4.2m in redundancy costs.
Careys said that it had deferred a 拢5.2m VAT payment in line with HMRC guidance with the sum due to be paid by March next year.
Group revenue for the period was 拢749m but Careys said pro rata this was 拢499m 鈥� down 拢75m from the 2019 figure.
Pre-tax profit was 拢15.3m with pro-rata earnings standing at 拢20.7m, nearly double the 拢10.8 posted in 2019 when the firm鈥檚 Irish business, which is also being wound down, was hit by problem jobs. It said the three non-core businesses had a combined revenue of 拢88m but turned in a 拢16m operating loss.
The group鈥檚 order book stood at 拢552.3m at the end of September, while it ended the period with net cash of 拢3.4m, compared with a net debt of 拢22.1m in 2019.
No comments yet