M&E specialist Imtech plunges into £27m loss

Aaron Morby 4 years ago
Share

EDF-owned M&E contractor Imtech racked up losses of over £27m last year due to legacy engineering projects and extra Covid operating costs.

Gautier Jacob, CEO, said Imtech UK has bounced back after an exceptional start to 2021
Gautier Jacob, CEO, said Imtech UK has bounced back after an exceptional start to 2021

The losses forced the parent French power giant to inject £30m into the business to help it trade through the crisis which had compounded already difficult trading on several high profile projects within the Engineering Services business which makes up just over a third of the group.

Over 2020, revenue at the group, which employs over 2,800 staff, slipped 4% to £443m.

To support furloughed staff Imtech received £3m help from the covid job retention scheme.

Chief executive Gautier Jacob, who took over the role from founder Paul Kavanagh at the end of 2020, said: “The UK engineering business suffered a number of substantial project losses in the year due to poor performance of a limited number of projects in the residential sector, which were adversely impacted by the pandemic.”

Across the main engineering services division, the central regional managed to deliver a profit with North, London and South falling into the red.

London projects saw productivity fall to just 30% at the height of the pandemic because of tight working conditions.

The engineering services business was restructured with 50 job cuts into a single business unit at a cost of around £2m following an in-depth review.

Jacob said: “We have amalgamated the management and operational structures to create a more cohesive customer offering.”

A sharp upturn in new work in the last quarter of 2020 resulted in a closing order book of £538m and new contracts worth over £311m secured during the first half of 2021.

Imtech’s Engineering Services has secured projects for the BBC in London, the NHS in the North West and North East, a school in Leeds, a new hotel in Hoxton, London and at the National Manufacturing Institute Scotland in Glasgow, as well as adding to its portfolio of work for parent company, EDF, in the nuclear arena.

Divisional revenue 2020 (2019)

  • Engineering services £298m (£359m)
  • Techinical FM £79m (£69m)
  • Systems integration £31m (£33m)
  • Energy Services £34m (-)

Imtech businesses, Inviron and Capula, both celebrated wins with new and existing clients in the first half of 2021.

Inviron secured and mobilised two long-term NHS contracts in the South East, worth in the region of £18m and also complemented its work at the Houses of Parliament by being appointed to the MEPFS framework, which will also bring opportunities for the wider Group.

Building on a 25-year relationship, Capula has been selected as a strategic supplier on a five-year framework supporting National Grid to deliver the UK’s future energy transmission systems.

Jacob said: “I’m incredibly pleased that we are able to report an exceptional start during the first half of this year

“Looking forward, we can see many opportunities coming through the pipeline and we anticipate a continued upturn within the industry and economy.

“As well as having a very strong forward order book, we remain focussed on our strategy to achieve growth in our targeted sectors including public sector, technology and industry.”

Latest news

Comment: Gateway is acting like a barricade

Contractors left banging their heads on an (unbuilt) brick wall
18 hours ago

Final phase of £1.5bn Elephant and Castle revamp hits planning

Get Living submits revised plan for 500 homes and 450-bed student block
2 days ago

Ealing backs final phase of £1.3bn estate rebuild

Friary Park estate rebuild in Acton reaches end stage
17 hours ago

Green light for scaled-down Nottingham student tower

Glasshouse Street scheme will deliver 247 student rooms
18 hours ago

Aston Villa to revamp North Stand

Club to reuse existing structure rather than complete rebuild
2 days ago

Mace signs ex-ISG director to lead Euro health and tech push

Gary Sweeney to head up healthcare and life sciences consultancy arm
17 hours ago

Sir Robert McAlpine claws way back into profit

Firm says return to profit and strong cash balance validates new strategy
2 days ago

Severfield to cut staff by 6% amid pricing pressure

Steelwork contractor warns of extended tighter pricing due to project delays
2 days ago

JRL completes sale of 50% stake to Malaysian giant IJM

Deal boosts balance sheet and kicks starts growth plan
2 days ago

Green light for £100m Liverpool Baltic station build

Enabling highway works to start in the autumn
2 days ago

First live tests for flying construction robots

Drones can lay construction materials at height on site
2 days ago

Three firms land £170m Gentoo Sunderland housing deal

PHS Solutions, Esh and RE:GEN to deliver 10-year home upgrade plan
3 days ago

Gateway gridlock hits build-to-rent delivery as starts nosedive

Build to rent starts plunge 18% in the capital
3 days ago

Call to shift Gateway 2 checks to end building bottleneck

"The current system isn't working but we all want to see safe buildings"
3 days ago

GBN launches £600m bid race for SMR engineer roles

Owner engineers to provide technical and assurance services
3 days ago

Wates hires ex-Homes England chief to head public sector push

Robert Stone to spearhead its public sector and national frameworks strategy
3 days ago

Acheson Construction collapse costs suppliers £8.5m

One frustrated creditor seized a telehandler after contractor went into administration
3 days ago

Dominus wins go-ahead for 173-bed Glasgow scheme

Old Wynd Street job expected to cost around £25m to build
3 days ago

Safety Regulator misses deadline to clear Gateway 2 backlog

Investors pulling out of funding high rise buildings
4 days ago

CITB still sitting on £95m cash pile

Staff numbers jump from 666 to 763 as training body wage bill soars
4 days ago

£500m road surfacing framework market call

NEPO goes out to consultation on north east regional highways deal
4 days ago

Two share £220m Scottish rail repairs and minor works deal

AmcoGiffen and CPMS win civils and building repair deals
4 days ago

Builder wanted for £60m London leisure and flats job

Tower Hamlets aims to replace St George’s Leisure Centre in Shadwell
4 days ago

Contractor confirmed for business park expansion

Roe Developments to start on next phase of Castle Donington scheme
4 days ago

Driver escapes injury as scaffold collapses onto van

Major three-lift scaffold fall blocks north London high street
1 week ago

Gilbert Ash to be sold to staff

£267m turnover contractor to transition to an Employee Ownership Trust
1 week ago

M Group seals biggest-ever deal with Telent takeover

Digital infrastructure specialist deal lifts turnover to £3bn
1 week ago

Aggregates firm Ashville went down owing more than £3m

Debts revealed in Companies House update
1 week ago

Cardo saves 100 jobs at Breyer roofing arm

Private equity-backed Welsh maintenance group continues to expand
1 week ago

Excavator knocked off lorry going under bridge

Traffic Commissioner inquiry after accident in south London
1 week ago

Contractor services