Structure Tone looks to bounce back after £9.1m loss

Grant Prior 3 weeks ago
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Fit-out specialist Structure Tone is looking to bounce back strongly this year after racking-up pre-tax losses of £9.1m in 2020.

Latest published results for the year to December 31 2020 show a pre-tax loss of £9.1m compared to £3.5m last time on turnover down to £84.6m from £103.7m.

Structure Tone continued to be dogged by a number of legacy contracts “which had encountered design and programme issues.”

The firm is now confident the write-downs are over and is looking to implement its latest five-year growth strategy following a recruitment drive.

Structure Tone is part of $8bn global construction services business STO Building Group which injected £12.7m into the contractor last year.

A Structure Tone statement said: “From a financial standpoint, 2020 was a challenging year, not least in terms of the challenges presented by Covid-19, but also as the company continued to close out a number of legacy contracts which had encountered design and programme issues.

“The Board took additional precautionary steps as presented in the year end trading position, by making additional write down provisions with final close out of the largest of these contracts expected no later than the end of Q1 2021.

“The Board also took the significant financial decision, that despite the year’s revenue being adversely impacted by Covid time delays, it would carry on along its strategic path by continuing its aggressive operational recruitment drive, absorbing the significant associated costs with the ultimate aim of benefiting from having the right team in place once the UK returns to some semblance of normalcy.

“The Directors remain confident in the strategy for the business and believe that opportunities in the UK market remain strong and will bounce back stronger despite the unprecedented economic year to March 2021.”

The firm currently has a 2021 pipeline of £109m and a further £69m for 2022.

 

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