Keltbray posts £9.4m loss due to Covid and restructuring

Grant Prior 2 months ago

Leading specialist contractor Keltbray has posted a pre-tax loss of £9.4m in its latest accounts.

Numbers for the year to October 31 2020 were hit by the cost of Covid and restructuring costs at Keltbray’s built environment business.

In the previous year Keltbray made a pre-tax profit of £10.5m from turnover of £563.4m. Revenue last year dropped to £428.6m.

Exceptional costs during the year included £7.2m paid to employees while on furlough and £1.5m in redundancy costs. The company also received £6.3m from the government furlough scheme.

Results show that total staff numbers were down to 1,809 from 1,884 the previous year.

Keltbray ended the year with £25m in cash and is confident about future prospects now the pandemic is easing and its order book stood at £224m.

The company also revealed a new core purpose ‘To redefine  the way sustainable development is delivered’ as part of its drive to support its  customers’ environmental, social and economic goals and contribute towards the  decarbonisation of the built environment.

Brendan Kerr, Group Executive Chairman said: “As I reflect on the year, my overwhelming feeling is one of pride for the tremendous work  that my executive team and all my colleagues across Keltbray have done to face the  challenges head on, continue to deliver the essential services our customers and the wider  UK demand, and protect the business for the future.

“Beyond any financial metrics, it truly  has been a year of human accomplishment.”

Darren James, Group Chief Executive added:  “These results cover a period of intensive challenge for Keltbray and the entire industry,  none of whom have been immune from the effects.

“Although we’ve had to handle  lockdowns, fundamentally revise working practices, and take tough decisions to safeguard  our business and the jobs it provides, I am pleased to report that as a result of our strategic  diversification, Keltbray finished the year in a strong cash position and is making good  progress in strategy execution.

“Our long-term aim is to become a more sustainably profitable specialist engineering  business by investing in our talented workforce, innovative engineering technologies and  core self-delivery capabilities.

“We will target opportunities in sectors that most benefit from  the certainty of our innovative approach. This approach is reinforced in our new core  purpose – To redefine the way sustainable development is delivered. This, along with  our strong governance, bodes well for the future of Keltbray.”

Peter Burnside, Group Financial Officer added: “The Group has posted a consistent financial performance in the 2019/20 financial year,  despite the ongoing pandemic and resulting market uncertainty.

“A focus on operational  excellence through our Covid-19 smart working practices, and disciplined cost control was  rewarded at the year-end with a good quality order book being maintained, a strong net cash  position and balance sheet resilience, enabling us to continue to enhance our self-delivery  capabilities, and capitalise on a strong mid-term pipeline of opportunities.”

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