M&E specialist Lorne Stewart suffers £8.5m loss

Aaron Morby 6 years ago
Share

Building services specialist Lorne Stewart has counted the cost of problem contracts suffering a £8.5m loss last year.

Chief executive PM Matthew said Lorne Stewart is keeping a tight control on costs while selectively tendering
Chief executive PM Matthew said Lorne Stewart is keeping a tight control on costs while selectively tendering

Latest results for 2017 show turnover at the firm rose 3% to £140m, although average headcount for the year fell 7% to 728 staff as management streamlined the business.

Group chief executive officer Puliyelethu Mathai Matthew said: “Profitability in the year was adversely affected by the resolution of several old contracts, write off of certain aged debtor balances and cost of restructuring the business.”

He added: “Margins remain a challenge at all levels of the supply chain, making insolvency a high risk at client level as well as subcontractor and supplier level.

“The company is therefore vigorously maintaining compliance with its stringent credit criteria both up and down line.”

Shareholders funds fell 27% to £13m as a result of the losses, partially offset by a reduced pension deficit.

Group company secretary Inbaraj Rajakumar added: “The board remains confident in the company’s prospects for 2018, having entered the year with a solid backlog of contracted work and a promising pipeline of opportunities which are being vigorously pursued.

“The company continues to streamline its internal processes and control, building on projects delivered in the last year to reduce direct cost and overheads.”

Last October, Lorne Steward transferred the ownership of its prefabrication business, MDSL, and £40m-plus revenue Rotary Building Services to a newly-formed parent holding company known as LSRM.

Latest news

Beard expands reach as revenue hits record £179m

Builder start 2024 with healthy head of work
4 hours ago

Race to start for £25m Cardiff twin tower reclad jon

Cardiff council to use SEWCAP to bid Butetown high rise flats revamp
7 hours ago

Gove calls up ‘super-squad’ to clear London planning log-jam

Specialist planning team first to unlock 7,000 homes in Newham and Greenwich
11 hours ago

Permasteelisa in £35m cladding win at St John’s Wood Square

Italian specialist to start work on luxury resi site by the end of this year
13 hours ago

Investor pumps another £30m into low carbon builder

House builder Greencore gets more funding as latest results reveal £4m loss
16 hours ago

800-bed Leeds student and shops scheme approved

Major three-block scheme will replace The Core shopping centre in the city
20 hours ago

Modular homes specialist files administration notice

Lighthouse bosses battle to save the business
21 hours ago

Go-ahead for £175m Birmingham Broad Street tower

Work to start on 47 storey build to rent tower in September
20 hours ago

Erith trading rebounds after lengthy bid-rigging probe

Staff paid £1.5m bonus after year of growth and return to profit
21 hours ago

Balfour and Costain win vast power and carbon capture job

Nine firms to share £4bn Teesside net zero work bonanza
4 days ago

First ‘Great Grid Upgrade’ job goes to MGroup and Murphy

Works to start this summer on £400m Yorkshire GREEN electricity pylon upgrade
4 days ago

London council can no longer police planning applications

Planing row reveals Greenwich officials no longer follow-up to check on developments
4 days ago

Surgo Construction falls into administration

46 jobs lost as historic contractor ceases trading
5 days ago

Mace fresh start date for £90m Natural History Museum hub

Reading project to build store for 28m specimens to start early next year
4 days ago

Competition watchdog probes Barratt Redrow merger

CMA opens investigation into creation of mega house builder
4 days ago

Safety chiefs act to avoid building control crisis

Three-month extension to deadline for professionals to prove their competence
4 days ago

TClarke hits £500m turnover target but profitability slips

Big work-winning year sees order book swell 70% to £943m
4 days ago

Just 10% of £10bn Levelling Up funding spent by councils

Speed of delivering 'shovel-ready' projects fails to meet expectations
4 days ago

Six win £1bn North West & Central railway works deal

Story, Murphy and Amey feature in five-year CP7 framework
4 days ago

Willmott Dixon names new finance chief

James Mackenzie joins from Willmott Dixon's Eco World development JV
4 days ago

Ilke Homes name reappears after £320m collapse

New brand Homespace now owns modular designs after Ilke failure
5 days ago

Second staircase rule costs Vistry £19m

Firm reopens East Midlands timber frame manufacturing plant
5 days ago

Clients urged to get ahead of contractor recovery cycle

T&T says investment decisions must be ‘made not delayed’ for best value
5 days ago

Fife groundworks and plant hirer goes under axing 35 jobs

James Penman (Plant Hire) falls into administration in 50th anniversary year
5 days ago

Smart Motorway Programme Alliance chief to step down

Tony Slater is moving on to take up fresh career challenge
5 days ago

Balfour M25 workers vote for strike in pay row

Maintenance crews to down tools over "meagre" pay offer
6 days ago

Andrew English returns to Skanska as infrastructure boss

Returning director replaces Jonathan Willcock who is off to Costain
6 days ago

Construction back in growth as output rises 1.1% in January

Green shoots of recovery as private housing returns to growth
6 days ago

UK Construction shines in solid year for Balfour Beatty

Operating margin improves to 2.3% at UK construction arm
6 days ago

JJ Rhatigan wins £49m London co-living homes job

Wood Lane project will deliver over 200 flats
6 days ago

Contractor services