London fit-out specialist falls nearly £8m into the red

Aaron Morby 2 weeks ago
Share

London fit-out specialist Structure Tone ran up a £7.9m pre-tax loss last year due to two problem jobs.

Structure Tone is enjoying strong orders this year including a £60m revamp of Rose Court building in London

The firm, which is part of $4.3bn global construction services business STO Building Group, said it expected to recover this year after securing major orders, including a £60m office revamp for ad giant WPP.

Dean Manning, managing director of the UK business, said: “2018 was a strong underlying year with revenues matching 2017 revenue of £105m. 

“But, the company also managed two difficult contracts which encountered design and programme issues. 

“One project was completed in 2018.  The other project completed earlier in 2019.  These losses resulted in a 4.3% margin loss. 

He said: “One project has subsequently been commercially agreed at a position better than the 2018 provision.  Discussion and negotiations on the other continue.”

Manning said that Structure Tone had engaged in a full review of its project management strategies, making changes to both management and controls.

He added: “The directors and shareholders remain confident in the strategy, further opportunities and long-term growth in the UK market. “

As a result, he said shareholders increased the equity of the company by £4.5m. 

Manning predicted revenue this year would exceed 2018 with a return to strong positive cash flows.  

Established 31 years ago,  Structure Tone (UK), delivers projects up to £75m, although its core business involves contracts under £5m for clients who are renovating or expanding their facilities. 

Latest news

Construction safety test cheats caught in police raids

Crooked test centres in answers for cash scandal
17 hours ago

Demolition giants land places on £50m framework

Housing Association Notting Hill Genesis confirms eight winners
15 hours ago

Winvic margin falls as revenue jumps 29% to £628m

Pre-tax profit drops a third to £20m as shed builder boosts workforce for growth
22 hours ago

Green light for £79m “Mancunian” tower

Planners approve major city centre regeneration scheme
21 hours ago

JRL starts £470m Isle of Dogs twin tower project

Far East Consortium starts work on 65 and 35-storey hotel and flats project
2 days ago

£200m Lancashire waste incinerator approved

Heysham Gateway energy recovery facility will create 350 construction jobs
21 hours ago

Common prequal standard adopted for HS2 subcontract bids

Main works civils contractors adopt new PQQ system to cut supply chain costs
2 days ago

Westridge to restart stalled Brighton Dome revamp

Contractor wins race to replace Britain's oldest builder on £21m renovation job
2 days ago

Laing O’Rourke returns to profit

Britain's biggest private contractor returns a £33m profit after stemming losses in Canada
2 days ago

Vast Elizabeth House London scheme to start next year

HB Reavis gets planning go-ahead for 1.2m sq ft project beside Waterloo Station
3 days ago

Digger driver jailed after builder crushed by excavator bucket

Ten month sentence after worker killed in trench
2 days ago

Winner picked for £250m ‘Harrods of Bayswater’ job

London's Whiteleys shopping centre to be redeveloped
3 days ago

Interserve signs off £13m Oldham cultural hub deal

Firm lands heritage and art centre project where Gilbert Ash held a pre-construction services agreement
3 days ago

William Birch lands York housing scheme from local charity

Construction to start later this year on apartments for visually impaired people
2 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
1 year ago

No win no fee service launched for construction disputes

New service to create "level playing field" for smaller contractors considering adjudication claims
3 days ago

Alun Griffiths lands £85m Cornish link road

Construction could start next year on St Austell scheme
3 days ago

Take 2 for Made in Dagenham film studios plan

Los Angeles developer pulls out of Holywood-style Dagenham studio plan over Brexit
3 days ago

Voice activated hard hats coming to sites

Alexa-style technology allows construction workers to ask for building plans
4 days ago

PM role on MPs Northern Estate upgrade worth £95m

Hunt starts for firm to deliver programme, project and cost management
3 days ago

Southern Water sticks with Costain and MWH for AMP7

Deal worth up to £325m to JV partners
3 days ago

Thirteen Group seeks trio for £110m housing upkeep deal

North East's biggest association to invite bids in December
3 days ago

Bellway launches two-year cost saving push

Procurement efficiency drive as margins peak
4 days ago

Full steam ahead for Eden’s £17m hot rocks energy plan

Drilling to start next summer to make St Austell Biomes carbon positive
4 days ago

J Murphy & Sons restates depth of losses

Pre-tax losses revised from £5.8m to £12.9m
5 days ago

Cadent Gas opens £740m work pipeline to new firms

Gas network specialist seeks four construction manager partners
4 days ago

First project approved in £1bn East London estate rebuild

Rainham estate rebuild will kick-start '12 estates' regeneration plan
4 days ago

Crossrail air quality checks give Bond Street site all clear

Contractors carry-out extensive tests after worker and union fears
4 days ago

Queen’s Speech confirms buildings safety regulator role

Post-Grenfell safety laws promise biggest regulatory reform to construction for 40 years
5 days ago

Esh raids rivals to boost Yorkshire team

Commercial build and refurb division makes seven senior appointments
4 days ago

Contractor services