Seddon takes £25m revenue hit from Covid impact

Aaron Morby 2 years ago
Share

Seddon Group has lost or seen delayed around £25m of turnover because of the Covid pandemic, leading the Bolton-based firm to streamline with a 7% headcount cut among its near 700 staff.

The construction business is being realigned this year to improve the risk profile through controlled exposure to large projects.

This will see a continued investment in property services, maintenance and affordable housing while maintaining a limit on the number of large-scale general construction projects the firm undertakes.

In latest accounts published for last year, Seddon Group said it increased debt facilities in late June to £15m as a precaution to cushion against the impact of Coronavirus.

But trading and cash generation since then has been more positive and resulted in group net cash of £13.5m at the end of September, up from £9m at the start of the year.

During 2019, Seddon Group lifted revenue to £192m thanks to the main construction business, which raised revenue 13% to £150m, whereas Seddon Homes reported flat turnover at £34m.

Overall group pre-tax profit doubled to £3.14m.

The improved performance at construction returned it to profitability with an operating profit of £1.2m compared with a loss of £3.7m in the previous year.

Chief executive Jonathan Seddon said: “Out robust business model and balance sheet mean that we can be confident our future and our contribution to the recovery.

“The group has cash resources, which give it the capacity to invest in land and to build its land bank for residential, healthcare and commercial property development opportunities.”

Latest news

ISG, Amey and Costain now industry’s quickest payers – list

Average payment days from main contractors slips by a day
45 mins ago

Vast £500m British Library expansion go-ahead

London Mayor still needs to give final nod to 800,000 sq ft extension at St Pancras site in London
5 hours ago

Wates names new chief executive

Cork-born Eoghan O’Lionaird to join later this month
4 hours ago

Keltbray director joins Barhale as North East chief

Mark Wood heads operations in Yorkshire and North East England
4 hours ago

Major London City building green deep retrofit approved

St Bride’s Tavern near Fleet Street will be demolished for the building expansion
5 hours ago

Gilbert Ash lands starring role in £38m Welsh theatre revamp

Contractor to start work this year on Theatr Clwyd upgrade
4 hours ago

Property clients to ramp up spending on decarbonising

Survey reveals nearly half of property chiefs plan to speed up spending on net-zero programmes over next twelve months
4 hours ago

Average self employed labour rates top £1,000 a week

Average weekly earnings reach high for skilled trades
1 day ago

BAM wins £49m Harrogate Convention Centre revamp

Local council hopes to sanction work start this autumn
1 day ago

Renaker to top-out Manchester with 71-storey skyscraper

Developer lifts the lid on planned five-building cluster for phase 3 of Great Jackson Street development
1 day ago

Costain bridge lift delayed by ground conditions

National Highways chiefs postpone planned lifting operation
1 day ago

Nexus sells utilities and EV contracting arms for £78m

Group to now focus on remaining business at south east housing civils contractor Tamdown
1 day ago

Speller Metcalfe lands lead role on £40m Tamworth revamp

Town centre to be transformed under ambitious plans
1 day ago

Scaffold boss banned over covid loan abuse

Eleven-year director ban after misuse of £50,000 loan
2 days ago

Gove issues six weeks ultimatum to sign building safety contract

Developers told to sign Government contract issued today or be banned from building homes
2 days ago

Firm fined £120,000 for lifting two builders in a telehandler bucket

Rochdale builder Hoyle Developments fined after repeated safety breaches
5 days ago

Hunt quashes reports HS2 will stop at Old Oak Common

Chancellor says no "conceivable circumstance" where HS2 would not terminate in Central London
4 days ago

London Chiswick roundabout 24-storey tower approved

Plan for 255 flats and offices finally passed after four previous schemes failed to proceed
2 days ago

Construction forecast to fall by nearly 5% this year

Private new build housing and RM&I to drive fall but infrastructure growth will also slow
2 days ago

Mace wins green office block at famous Fleet Street pub site

Contractor to build new 12-storey block pioneering latest sustainable construction methods
2 days ago

Firms readied for raft of net zero and building safety frameworks

Procurement specialist LHC to tender five mission zero retrofit and building compliance deals
5 days ago

Plans in for two Derby city centre schemes of 1300 homes

Eagle Quarter and Bradshaw Way schemes to breathe life into Derbion centre area
5 days ago

United Living names new infrastructure services MD

Former SSE Contracting operations director John Farrell joins multi-service contractor
5 days ago

Sunak promises Bill to build £100m Holocaust Memorial

Holocaust Memorial Bill will update historic legislation allow the building of a new memorial in London
5 days ago

Mace Interiors to transform Hanover Square office block

Refurbishment work to start this year on major revamp of Mayfair building
6 days ago

Garden village in Darlington gets £43m infrastructure cash

Transport and highways work will pave way for 2,000 new homes
6 days ago

Plans in for Lendlease £1.9bn Birmingham Smithfield scheme

Ambitious plans for City's old market area advance with enabling works hoped to start this year
7 days ago

TClarke on track for £500m turnover this year

Building services specialist sees 2022 revenue and profit up by around a third
6 days ago

McAlpine tenders M&E work at £340m Museum of London job

Demolition and first MEPH work packages come out to bid
6 days ago

BAM signs off on £65m Manchester First Street office job

Briggs & Forrester lined up for MEP package
6 days ago

Contractor services