Problem contracts force another Lakehouse profit warning

Grant Prior 8 years ago

Lakehouse issued another profit warning to the City this morning as the scale of the ongoing challenges facing the Essex contractor were highlighted in its interim results.

The firm issued its first profit warning in February less than a year after its Stock Exchange float.

That saw its share price tank and last month a boardroom battle saw the senior management shunted out as founder Steve Rawlings returned to the company following a hard-fought power struggle.

The new leadership confirmed today that a further £2m in profit was being written off against problem contracts particularly on roofing deals.

The deficit was blamed on regional operations not being able to cope with a rise in work “in particular managing inventory, staff and site contractors”.

Lakehouse said: “Whilst very disappointed to be reporting a further revision to its expectations, the restructured Board is fully focused on improving performance and remains confident in the strength and resilience of the Group, together with the opportunities to restore shareholder value over time.”

Interim results for the six months to March 31 2016 show the firm made a pre-tax loss of £1.8m on a turnover of £167.8m.

Going forward, the company’s order book has increased to £636m and Lakehouse is now on 224 frameworks.

It said the focus would now be on “organic growth” rather than the recent strategy of acquisitions which saw £36.5m spent in the year to March 31.

Ric Piper, Chairman said: “This was a very challenging period for Lakehouse, with headwinds in our Regeneration and Energy Services markets and operational challenges, combined with some disruption internally, as the composition of the Board was resolved.

“The Board believes that the Group’s business fundamentals remain strong. The immediate focus is for the Group to deliver its further revised expectations for the full year to 30 September 2016 and increase shareholder value over the longer term.”

The latest profit warning sent the Lakehouse share price tumbling more than 40% in early trading to hit a new low of 24p. The float price last year was 89p.

Latest news

M&S wins appeal over Gove refusal to demolish flagship store

Retailer claims victory in planning row over Marble Arch building
13 hours ago

Plans expand for “new city district” at Bristol airfield

Malaysian firm YTL gets green light for bigger Brabazon development
19 hours ago

NG Bailey chief to step down

David Hurcomb to retire in May after 14 years at the helm
1 day ago

Hundreds to be rehoused in Aberdeen over RAAC fears

Engineers exploring whether to condemn 500 homes or carry out remedial works
1 day ago

Plan in for North London 620-bed student scheme

Student rooms and affordable homes scheme to be built in Wood Green
19 hours ago

Stantec lands design role on £4bn battery factory

First main construction award due shortly on Somerset mega-project
2 days ago

Utilities and civils specialist Ferns returns to profit

Kent-based firm grows to £81m revenue as telecoms work takes off
20 hours ago

Go-ahead for 316 bed Stratford student scheme

Construction to start by end of year on site next to Pudding Mill Lane station
20 hours ago

Equans suffers £146m loss and quits new build housing

Losses hit £99m on housing association new build work
2 days ago

Job cuts at modular house builder TopHat

Offsite housing specialist acts in response to "challenging market"
2 days ago

Graham wins £85m Milton Keynes Lakes Estate revamp

Enabling works start ahead of building 200 council homes
2 days ago

Go-ahead for London’s largest estate £1bn rebuild

Spring start for first job at Stratford's Carpenter Estate scheme
2 days ago

Costain trials electric vans on major civils sites

Green vans meet "tight budgetary requirements" in pilot scheme
3 days ago

Green light for major mixed-use scheme in Ealing

Scheme will provide 10,915 sq ft of industrial workspace alongside 140 new homes
2 days ago

Taylor Wimpey sees tender inflation fall to 1%

House builder retenders site work as build costs slide
3 days ago

Careys back in profit after £47m turnaround

Contracting division back in profit ahead of three-year growth plan
4 days ago

Rye Demolition goes into administration

Another specialist contractor goes under
3 days ago

Historic breakthrough for HS2’s longest tunnel drive

TBM Florence ends her 10 mile journey under the Chilterns
3 days ago

Volumetric builder Tide seals deal to start London tower

32-storey North Acton tower will consist of 462 co-living units
3 days ago

Costain moves HQ to London’s Can of Ham

Contractor makes return to London from Maidenhead base
3 days ago

Former Keltbray highways MD joins McAlpine

Vip Gandhi takes lead role at Transport division
4 days ago

Willmott Dixon exits stage left from Essex theatre contract

Contract re-tendering shines spotlight on growing schism between contractors and clients
4 days ago

Purpose build student schemes to surge again

Unite assembles record £1.3bn pipeline as fall in HMO supply boosts PBSA sector
4 days ago

Bidding starts for £1.4bn Midlands Rail Hub Alliance

Alliance will deliver upgrades to rail lines and stations around Birmingham and nearby towns
4 days ago

Brickability sounds warning over materials demand

Distributor sees lower sales lasting for longer before house building recovers
4 days ago

English Cities Fund raises extra £200m for work pipeline

Muse, Homes England, L&G partnership to double in size
4 days ago

Go-ahead for 64 homes at former Glasgow Coliseum theatre

Robertson-owned developer Urban Union to build four housing blocks at site
4 days ago

Competition probe launched into 8 major house builders

Cartel watchdog says volume house builders may have exchanged competitively sensitive information
5 days ago

Cement-free concrete firm falls into administration

DB Group also owned Pudlo waterproofing products
5 days ago

Everton Stadium now structurally complete

Laing O'Rourke lifts final concrete terrace section into place
5 days ago

Contractor services