Careys profit falls to £1m after £8m discontinued business hit

Aaron Morby 2 years ago
Share

Extensive restructuring of the Carey Group saw it book £8m losses on discontinued business leaving the group with a £1m pre-tax profit last year.

The Wembley-based firm blamed Covid and its focus away from non-core business for a sharp fall in revenue to £344m from a pro-rata sum of £500m, based on an 18-month reporting period.

The weakened performance in the year to September 2021 compared to a pre-tax profit of £15m booked during the 18 months ending September 2020.

Chief executive Jason Carey said that reduced revenue from non-core business and reduced margins from raw material price inflation and labour rate inflation had impacted the business.

But he pointed to a better year ahead based on a strong order book at £667m.

The group is now focused on civil engineering through Careys and its dry lining BDL businesses.

Restructuring saw the headcount drop from 1,079 to 814 as Carey New Homes, Carey’s Irish business and demolition contractor TE Scudder were wound down.

Latest published accounts at Companies House also revealed Carey has upped its provision from £3m to £9m for what it described as “a regulatory matter relating to historical breaches due to the behaviour of a former management team”.

The accounts state: “The directors are fully cooperating with the relevant parties in relation to these investigations. The potential liability ranges from £6m to £16m.

“Legal advice indicates that this upper limit is likely to reduce to around £11m subject to the compliance of certain formalities.

“From legal advice received and various discussions with related parties, the directors have prudently estimated that a provision of £9m is appropriate.”

The group ended the year with £6m cash, down from £18.5m previously, and net debt of £2.4m.

Latest news

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
6 hours ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
10 hours ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
13 hours ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
14 hours ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
12 hours ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
12 hours ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
13 hours ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
13 hours ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
13 hours ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
1 day ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
2 days ago

Housing contractor Durkan suffers second year of losses

More fire safety provisions tip firm into £3.9m loss
2 days ago

Farrans makes breakthrough on tricky tunnel job

Tunnel under Tees latest part of new £155m water pipeline job
2 days ago

Heidelberg buys aggregates and earthworks specialist B&A

Latest deal follows acquisition of Mick George
2 days ago

Flagship biodiversity net gain scheme flawed

NAO warns Government's flagship green development scheme at risk of failure
4 days ago

Plan in for £3bn Lincolnshire mega data centre

3.3m sq ft Humber Tech Park will be one of Europe's largest data centres
5 days ago

Green light for Digbeth 1,300 homes scheme

Warner’s Fields scheme to start with excavation and landscaping of the River Rea
5 days ago

£210m M3 Junction 9 upgrade gains consent

VolkerFitzpatrick to start work in early 2025 on Winnall roundabout, near Winchester
5 days ago

United Living wins 14-year L&Q homes repairs deal

Trafford housing upkeep deal worth £205m
5 days ago

£400m Lewisham resi-led scheme advances

Land deal paves way for Amro Partners' 1,000-home London scheme
5 days ago

McLaren gets go-ahead for Grade II listed Leeds student scheme

Springfield House to be revamped and two new wings added
5 days ago

Piling giant to fit people alarms on all rigs

Cementation Skanska upgrades site safety systems
5 days ago

Vistry to make £800m profit after subcontractor cost cuts

House builder bullish about shareholder returns after asking suppliers for discounts
6 days ago

Shareholders approve £2.5bn Barratt and Redrow merger

Final hurdle is for the competition regulator to approve the deal.
6 days ago

Green light for £80m Leith waterfront revamp

Build-to-rent homes and student accommodation scheme to be built
6 days ago

Tilbury Douglas clears Interserve legacy jobs to return to profit

Revenue tops £500m in first year as standalone contractor
6 days ago

Land deal paves way for Manchester civil service office hub

Government buys five acres at former Central Retail Park
5 days ago

Speller Metcalfe wins Wolverhampton library upgrade

Full works are due to start in the autumn
5 days ago

Skills shortage puts big infrastructure projects at risk

Government failing as an intelligent client and now over-reliant on consultancies
6 days ago

Contractors face further insulation board price hikes

Cost of PIR insulation boards set to rise another 10%
7 days ago

Contractor services