According to latest accounts for the Shepherd Group, which now primarily covers the activities of the Portakabin business, obligations on previously completed projects by Shepherd Construction are still costing the group dearly.
This rump of the group recorded a £31m loss last year relating to the completion of a retail and residential complex in Colindale, North London and significant additional provisions in relation to claims on completed contracts where there remains uncertainty about the outcome.
The firm said it had been notified of some latent defect claims, including significant claims relating to items arising on historic building design issues, particularly in relation to cladding design and other fore safety issues.
The company no longer trades construction contracts and the accounts were not prepared on an ongoing concern basis.
Overall the group recorded a £49m profit, up from £45m on revenue slightly ahead at £348m.
During the year the modular and portable building arm increased profit by 27% to £81m.
