Firm says row with Revenue Scotland over landfill money set to continue
A dispute with the taxman saw McLaughlin & Harvey book a 拢2m provision in its last set of figures, accounts now filed at Companies House reveal.
The Northern Irish firm, which built the main stadium for last year鈥檚 Commonwealth Games in Birmingham and which recently won a 拢50m scheme to build a new learning campus in Wolverhampton, said the provision related to a 鈥渓ong-running legal case with Revenue Scotland on landfill tax鈥.
The row involves its environmental business with the firm making a provision of 拢1.95m after a partial award on the case was made in the taxman鈥檚 favour.
But in notes accompanying the accounts, filed just before Christmas, McLaughlin & Harvey said: 鈥淲e contest this partial award and Revenue Scotland have appealed the Upper Tribunal ruling, so this will continue to run. All efforts are being made to resolve the issues in an amicable and sensible manner without further litigation.鈥
The contractor, which last month got the green light to start on a delayed 拢100m office scheme in Glasgow, said pre-tax profit in the 18 months to June 2022 was 拢3.2m, around 拢178,000 a month 鈥 down from the 拢5.9m, or 拢492,000 a month, it posted in the year to December 2021.Turnover was 拢799.5m, compared to 拢480m for the previous period.
It said its building and civils businesses stayed in profit with the firm landing spots on several government frameworks which it said meant 鈥渢he current order book, tender opportunities and performance for 2022/23 are very healthy鈥 鈥 although it added supply chain delays, volatile pricing and labour restrictions meant it was forced to foot the bill for 鈥渟ubstantial additional costs鈥.
But the firm鈥檚 environmental division racked up a pre-tax loss of 拢1.9m with McLaughlin & Harvey saying it was 鈥渄ownsizing and restructuring鈥 the business as a result.
The accounts also show the firm claimed 拢113,000 from the government鈥檚 Coronavirus Job Retention Scheme during the period, on top of the 拢2.2m it picked up the year before.
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