Careys profit falls to £1m after £8m discontinued business hit

Aaron Morby 3 years ago
Share

Extensive restructuring of the Carey Group saw it book £8m losses on discontinued business leaving the group with a £1m pre-tax profit last year.

The Wembley-based firm blamed Covid and its focus away from non-core business for a sharp fall in revenue to £344m from a pro-rata sum of £500m, based on an 18-month reporting period.

The weakened performance in the year to September 2021 compared to a pre-tax profit of £15m booked during the 18 months ending September 2020.

Chief executive Jason Carey said that reduced revenue from non-core business and reduced margins from raw material price inflation and labour rate inflation had impacted the business.

But he pointed to a better year ahead based on a strong order book at £667m.

The group is now focused on civil engineering through Careys and its dry lining BDL businesses.

Restructuring saw the headcount drop from 1,079 to 814 as Carey New Homes, Carey’s Irish business and demolition contractor TE Scudder were wound down.

Latest published accounts at Companies House also revealed Carey has upped its provision from £3m to £9m for what it described as “a regulatory matter relating to historical breaches due to the behaviour of a former management team”.

The accounts state: “The directors are fully cooperating with the relevant parties in relation to these investigations. The potential liability ranges from £6m to £16m.

“Legal advice indicates that this upper limit is likely to reduce to around £11m subject to the compliance of certain formalities.

“From legal advice received and various discussions with related parties, the directors have prudently estimated that a provision of £9m is appropriate.”

The group ended the year with £6m cash, down from £18.5m previously, and net debt of £2.4m.

Latest news

Sir Robert McAlpine claws way back into profit

Firm says return to profit and strong cash balance validates new strategy
11 hours ago

Aston Villa to revamp North Stand

Club to reuse existing structure rather than complete rebuild
7 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
8 hours ago

Severfield to cut staff by 6% amid pricing pressure

Steelwork contractor warns of extended tighter pricing due to project delays
12 hours ago

JRL completes sale of 50% stake to Malaysian giant IJM

Deal boosts balance sheet and kicks starts growth plan
12 hours ago

Green light for £100m Liverpool Baltic station build

Enabling highway works to start in the autumn
1 day ago

First live tests for flying construction robots

Drones can lay construction materials at height on site
12 hours ago

Three firms land £170m Gentoo Sunderland housing deal

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

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

Build to rent starts plunge 18% in the capital
2 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"
1 day ago

GBN launches £600m bid race for SMR engineer roles

Owner engineers to provide technical and assurance services
2 days ago

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

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

Acheson Construction collapse costs suppliers £8.5m

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

Dominus wins go-ahead for 173-bed Glasgow scheme

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

Safety Regulator misses deadline to clear Gateway 2 backlog

Investors pulling out of funding high rise buildings
2 days ago

CITB still sitting on £95m cash pile

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

£500m road surfacing framework market call

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

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

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

Builder wanted for £60m London leisure and flats job

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

Contractor confirmed for business park expansion

Roe Developments to start on next phase of Castle Donington scheme
3 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

Czech energy tycoon buys UK’s biggest rebar supplier

Spanish offload Celsa UK operation to be rebranded 7 Steel UK
1 week ago

Caddick Construction targets £400m turnover

Regional shake-up pays off at contracting arm
1 week ago

Redrow chief steps down after Barratt merger

Matthew Pratt leaving after 22 years
1 week ago

United Living names new property services senior team

New CEO and COO appointed to lead growth in housing upkeep and retrofit
1 week ago

Contractor services