GF Tomlinson says jobs stalled after staff at public sector clients forced to self-isolate following Omicron outbreak

Regional contractor GF Tomlinson said stalled public sector jobs and the ongoing impact of covid-19 sent the firm into the red last year.

The Derbyshire firm, which specialises in public sector work, was hit by a slowdown in contract awards because of the number of staff at clients self-isolating following the discovery of the Omicron variant of covid-19 in late 2021.

It said the delays meant revenue in the year to June 2022 was 拢30m down on budget.

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GF Tomlinson said 2022 revenue was 拢30m down on what it had been expecting

It added that it was also hit by a number of its own staff forced to self-isolate 鈥渕eaning that it was more expensive to run the existing sites鈥� at a time when government support packages were finishing up.

But the firm, which has been going since 1892, admitted that an unexpected benefit of jobs being put on hold in 2021 was 鈥渢hat we had not entered into contracts prior to the substantial price increases [of materials and labour] which could have caused us to make even more losses on the projects in the next financial year鈥�.

In the year to June 2022, the firm racked up a pre-tax loss of 拢2.3m from a 拢741,000 profit last time on turnover down 7% to 拢81m.

The firm, which employs more than 220 people, said it decided against job cuts although deferred replacing those staff who left during the period.

It added that two problem jobs meant it was forced to shell out on 鈥渟ubstantial legal fees鈥� during the period and had also booked a 拢1m provision against certain contracts because of increased costs.

The firm, which is on frameworks run by Scape and Pagabo, said its future pipeline of work was more than 拢60m in sectors including education and healthcare.

The previous year鈥檚 net cash position of 拢3.5m moved to a 拢2.1m overdraft, the accounts added.

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