Groundworks giant sets aside £4.5m for possible cartel fine

Grant Prior 9 months ago

Vp has set aside £4.5m to cover possible fines following an investigation by the Competition and Markets Authority (CMA).

Watchdogs issued provisional findings in April following a competition probe into the groundworks market.

Officials have been investigating M.G.F. (Trench Construction Systems) Ltd, Vp plc and Mabey Hire Ltd.

Vp confirmed the provision in its preliminary results for the year to March 31 2019 which were released today.

It said: “The CMA announced on 9 April 2019 that it is investigating three major suppliers of groundworks products to the construction industry.

“The CMA has provisionally found that the three businesses, including a part of the Group’s excavation support system business (Groundforce), were involved in suspected anti-competitive behaviour.

“The CMA’s findings are, at this stage in its investigation provisional and do not necessarily lead to a decision that the companies have breached competition law.  We continue to work on our response to the CMA’s findings.

“At this point in the process we cannot make an accurate estimate of the likely cost that may subsequently arise in the event that the CMA were to decide in the future that a breach of competition law has taken place.

“However, accounting standard IAS 37 requires us to provide an amount in these accounts and accordingly we have included a figure of £4.5 million as an exceptional cost.

“This figure is in the arithmetic midpoint of a range of possible outcome (£0 to £9.0 million) that we have calculated based upon previous cases and CMA published guidance and without any admission of culpability.”

Vp posted a strong set of results showing pre-tax profits up to £46.8m from £40.6m last time on turnover up to £382.8m from £303.6m.

Neil Stothard, Chief Executive of Vp said: “Vp has started the new financial year positively and in line with our expectations. 

“We anticipate that our main markets in the UK will continue to be supportive, but with slightly slower overall growth than experienced in recent years influenced by the current political and economic uncertainty.”

Latest news

Staff sent home at Harry Fairclough Construction

Warrington contractor goes under after 120 years in business
2 days ago

Strucktor lands M&E package at £460m Raffles hotel

Specialist bags major win from Ardmore on Whitehall conversion job
2 days ago

Construction work stops on another Elliot Group tower

Work suspended on £70m The Residence in Salford
3 days ago

London super sewer passes halfway point

Two further TBMs to be launched this year for east part of 25km drive
2 days ago

Entire facade of wind damaged tower to be strengthened

Major remedial programme planned after three cladding panels blown-off
2 days ago

Costain Welsh road job £100m over budget and two years late

Row simmers with Welsh Government about liabilities for cost overruns
3 days ago

BAM trading steady after second half uplift

Rise in profit at BAM Construction offsets fall at BAM Nuttall civils arm
2 days ago

Plan in for £30m East London ice rink

Twin pad ice skating centre will be biggest in southern England
2 days ago

Winvic starts £43m Milton Keynes rental flats tower

Aubrey Place will rise to 18 storeys around a H-shaped footprint
3 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
2 years ago

One million homes with planning permission not built

Council chiefs claim figures show 'the planning system is not a barrier to house building"
3 days ago

Morgan Sindall profit jumps as revenue tops £3bn

Construction margin edges up to 2.2% in bumper year
3 days ago

Laing O’Rourke nets £500m Everton stadium

Work to start later this year on Bramley-Moore Dock stadium
4 days ago

Scotland’s Whyte Crane Hire collapses

11 jobs axed as family-owned mobile crane specialist calls in administrators
3 days ago

Plans go in for HS2 Old Oak Station

Start of construction at HS2’s London super-hub moves a step closer
4 days ago

Opinion: New immigration rules are unworkable on site

Points based system will create severe shortages and is dismissive of construction trades
4 days ago

New minister for HS2 named

Lancashire MP Andrew Stephenson to oversee HS2 and Northern Powerhouse Rail
4 days ago

Plans unveiled for new £150m film studio in Reading

US giant Blackhall Studios keen to invest in the UK
4 days ago

Government cuts flow of EU construction workers

New points based immigration system means end to free movement of labour to sites
4 days ago

Facade panels blown off 33-storey Manchester tower

Caddick Construction and cladding contractor carrying out checks on building
4 days ago

New Museum of London enabling works to cost £40m

Bidders day planned for complex enabling and structural work package
4 days ago

Summer start for 350-flat Nottingham scheme

9-storey block to be built next to Nottingham station
5 days ago

Millwall FC reveal new stadium plan

Plan for phased expansion of the Den with upper stand tiers
4 days ago

Vistry deal to build 1,400 housing association homes

Aster and Vistry will invest £167m in five new sites
4 days ago

Fusion21 names decarbonising framework winners

Sixty eight firms secure places on £250m energy efficiency framework
5 days ago

Speller Metcalfe wins £14m Devon leisure centre deal

New Tarka Leisure Centre to offer ‘endless ski slope’
5 days ago

Bardsley crashed owing £45m to trade creditors

Manchester builder hit by toxic mix of contractual disputes and project delays
5 days ago

Bardsley hit sends Anders Glass under

Manchester glass merchant and glazing contractor crashes
5 days ago

Green light for UK’s first ‘super slender’ resi tower

Broad Street tower in Birmingham will be less than 10m wide but rise to 37 storeys
6 days ago

Higgins bags £44m job at Shredded Wheat Factory site

Over 200 homes planned for Welwyn Garden City site
6 days ago

Contractor services