Regional contractor鈥檚 restated 2019 accounts send it nosediving into red
Previously underestimated losses on problem contracts at regional contractor Stepnell have forced it to revise its accounts from two years ago with the firm restating its 2019 results from a 拢1.1m pre-tax profit to a 拢29m loss in the 12 months to March that year.
The firm said a contract review had triggered the move which it largely blamed on a single job 鈥渨here ground conditions necessitated extensive ground remediation works鈥�.
It added that other losses were from 鈥渙nerous鈥� terms and conditions on jobs won before 2018 which it added that a rejigged Stepnell, which is based in Rugby, Warwickshire, would no longer accept.
Stepnell said forecast losses on some schemes 鈥渋n a number of instances had been grossly understated鈥� and joint managing director Mark Wakeford added: 鈥淒irectors have had to remove under-performing staff, reduce the number of regions from five to three and impose tighter management controls on cash management, bidding and various construction activities.鈥�
The firm said turnover for the year to March 2019 had also been restated to 拢161m, down from the previously published 拢168m.
In its latest accounts, for the year to March 2020, the firm, which employs around 400 people, said it had narrowed pre-tax losses to 拢3.4m on turnover down 20% to 拢128m.
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