McNicholas Construction suffers £36m loss

Aaron Morby 6 years ago
Share

McNicholas Construction recorded a £36m pre-tax loss in accounts posted for the period just before being sold to Kier.

Kier bought McNicholas for £24m and acquired the civil engineering firm’s debt in July last year.

Latest private accounts for McNicholas, which were extended to cover a 15-month period to June 2017 to bring it into line with Kier reporting, reveal underlying profitability from ongoing contracts remained strong in line with expectations.

But a detailed review of outstanding debtors and work in progress saw the firm book provisions on jobs where final accounts still needed to be agreed.

The loss also took into account changes to estimates used in some long-term contracts and one-off costs in relation to the sale of the business.

This re-evaluation of the contracts resulted in the firm’s net assets of £6.8m in the prior year becoming net liabilities of nearly £32m, including a £10.9m pension liability.

Over the 15-month period revenue rose £68m to £248m, due partly to the extended reporting term.

Average monthly turnover increase 10% to £16.5m, driven by increased volume from ongoing contracts.

Since being acquired by Kier, McNicholas secured three contract wins including a five-year £31m ‘Gas to the West’ network distribution operation for SGN Natural Gas in Northern Ireland.

It also secured a £40m extension to 2022 to the Phoenix Natural Gas contract in Northern Ireland and a one-year £30m contract extension to 2020 for the Network Rail CP5 High Voltage and Electrification and Plant framework.

Former McNicholas chief executive Barry McNicholas is now head of Kier’s strengthened utility division as the business holds high hopes of securing more work in the upcoming rail and water capital spending period framework renewals.

Latest news

Lendlease puts construction arm up for sale

Radical global restructure to raise £2.3bn and focus on Australia
58 mins ago

Former Crossrail boss Mark Wild to lead HS2

Wild to bear down on spiralling costs and bring rejigged scheme in on time
19 hours ago

Receivers in at £125m Manchester tower developer

Domis Construction walked away from scheme following doubts over funding
2 days ago

Costain A1 £260m dualling job finally gets go-ahead

Ministers sat on planning inspectors report for nearly three years
6 hours ago

Election delays decision on Lower Thames Crossing

Planning decision on £1.2bn Luton airport expansion also pushed back six months
6 hours ago

Caddick steps-in at former Lane End housing job

Contractor to restart phase of £262m scheme hit by administration
6 hours ago

Plans in for Leeds iconic Tetley building revamp

Former brewing giant's HQ to become indoor market and offices
6 hours ago

BAM wins first phase of North Devon hospital revamp

New staff accommodation to kick-off hospital redevelopment
6 hours ago

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
5 days ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
4 days ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
4 days ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
4 days ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
5 days ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
5 days ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
5 days ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
5 days ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
5 days ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
5 days ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
5 days ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
6 days ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
6 days ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
6 days ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
6 days ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
6 days ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
6 days ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
6 days ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
7 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
1 week ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
1 week ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
1 week ago

Contractor services