Lorne Stewart battles to return to profit

Aaron Morby 3 years ago
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The holding group for building services specialist Lorne Stewart and Rotary Building Services is still battling to stem losses.

Accounts for Saudi Arabian-owned LSRM Holdings last year reveal the Harrow-based group fell £3.7m into the red, coming on top of losses of  £2.2m in 2019 and £14.5m in 2018.

Revenue rose by 7% to £134m.

Over the year headcount was reduced by around 100 to 763 as the business was streamlined to meet Covid operational challenges. To support furloughed workers the group received £1.15m in Government support.

Among the key trading arms, the main M&E business Lorne Stewart improved on last year even in the face of Covid, recording a £350,000 loss on revenue up 12%  at £131m, compared to a £690,000 loss in 2019.

But the much smaller Rotary Building Services suffered a £2.3m loss on revenue slightly dipped at £9.5m.

Chief financial officer, Ramesh Krishnamurthy, said that despite the challenges and project delays cause by Covid, the business had improved cash generation, giving year-end net cash of nearly £14m up from £8m previously.

He added: “The board is reviewing the operational efficiencies to put the optimal structure in place to reduce costs.”

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