Countryside to cut jobs at loss-making offsite factories

Aaron Morby 2 years ago
Share

Countryside Partnerships is launching a major cost-cutting drive after a site-by-site review of the new partnerships-focused business revealed problems at its Midlands and North operations as well as mounting losses at its offsite business.

John Martin, chair and interim CEO of Countryside, said that the group’s expansions into the regions had been “too ambitious”.

“After conducting a review of all operational sites, management has identified a number of areas where we can raise our game and our team is moving quickly to improve performance,” he said in the firm’s latest trading update.

Martin added that action would now be taken to consolidate regional resources, reduce costs by £15m per annum and create a strong platform for growth.

The move into offsite manufacturer from three timber-frame factories has left Countryside with excess capacity and forecast operating losses of £10m this year.

He said the board was now rethinking its MMC strategy and looking at all options to act quickly to minimise losses arising from manufacturing.

Martin also said that Countryside had failed to realise the benefits of the £135m Westleigh acquisition completed in 2018.

He said that project margins were very low and, in a number of cases, declined towards the end of projects in the former Westleigh territory. Some projects that were previously meant to have been finished were not completed to Countryside’s high standards, admitted the firm.

The South Midlands region is currently unprofitable and will be merged with the West Midlands region in order to consolidate teams and focus financial resources.

Its Northern business also experienced significant operational challenges.

These stemmed from delayed starts and failure of some groundworkers, timber-frame and roofing contractors to deliver to the required quality and in the required timeframe. 

A new management team has been introduced to focus on building a strong and sustainable business in the region.

Countryside said it was continuing to off-load assets as part of its move out of traditional housing development in the Home Counties.

Realisation of a total targeted £450m of legacy assets since July 2021 has so far reached £150m, “slightly ahead of expectations”.

Average net debt at the business over the last 10 weeks stood at £115m.

Countryside said it had still to make a full assessment of the cost of its fire safety pledge to remediate unsafe buildings. This will be produced for the interim results in May.

 

Latest news

Quartet win £490m North West & Central railway works deal

Skanska, Kier, Octavius Infrastructure and Story Contracting bag major projects deal
1 hour ago

Council finds extra £33m for Buckinghamshire link road

South East Aylesbury Link Road costs soar by nearly 30% to £147m
47 mins ago

Site labour rates start rising again

Industry's biggest payroll firm says "it feels like things could be turning round"
1 hour ago

Galliford Try names new finance director

Rentokil's Kris Hampson joins contractor to replace Andrew Duxbury
2 hours ago

Hydrogen-fuelled diggers to be allowed onto highways

Government to raise barrier to widespread use of hydrogen fuelled plant in construction
18 hours ago

Council boss hits out at bat threat to £274m road job

Natural England could scupper scheme due to be built by Ferrovial
2 hours ago

Unite Students plans first major mixed-use scheme

Developer's first mixed BTR and PBSA project to be built in Edinburgh
17 hours ago

Plans in for £118m Government hub in Darlington

Work pencilled to start later this year on new home for 1,450 civil servants
17 hours ago

New contractor highlights Henry Construction jobs on website

New firm lists jobs by failed contractor to show its experience
1 day ago

Contractors line up for £2.6bn Anglian Water AMP8 deal

Eight big names land places on pioneering @one Alliance
2 days ago

McAleer & Rushe bags first major later living project

Work to start this month on 167-flat Royal Tunbridge Wells project
1 day ago

Kier starts first all-electric prison houseblock job in Kent

Next-generation fully electric T60 prison houseblock to be built at HMP Elmley
1 day ago

Keepmoat sees better times ahead in housing market

Profits dip in 2023 despite construction of record number of new homes
1 day ago

Vistry signs partnership deals for 1,900 mixed tenure homes

West Sussex former airfield and Newmarket sites to break ground
2 days ago

Turnover at Wates tops £2bn for first time

Construction division exceeds £1bn turnover as average contract value hits record high of £48.3m
2 days ago

L&G looks to sell Cala Homes in exit from house building

Insurance giant reported to be preparing to offload 3,000 homes-a-year developer
3 days ago

Multiplex profit almost trebles as margin hits 5.5%

Revenue jumps 20% to £675m as big London scheme complete
2 days ago

TopHat puts plans to open huge Corby factory on hold

Advanced manufacturing facility was due to employ 1,000 people
2 days ago

Laing O’Rourke lands Calderdale hospital job

Enabling works to start by the end of this year at West Yorkshire site
2 days ago

Go-ahead for £475m Sunderland film and TV studios

Work to start this year on first phase Corwn Work studios
2 days ago

Willmott Dixon set for £20m Stockport Community Hub

Planning decision expected in June on Marple leisure and health clinic project
2 days ago

Police hunt for blundering dumper truck thief

Raider drove into a fence before getting stuck on a bank
2 days ago

Beattie Passive files administration notice

Passivhaus pioneer has been in business for more than ten years
3 days ago

McAlpine set for £50m space and tech centre

Northumbria Uni sign pre-con deal for new satellite research hub
3 days ago

VolkerFitzpatrick seals £34m Kent road viaduct

Work to start next year on Sturry Link Road near Canterbury
3 days ago

Eight win £600m Scottish civil engineering framework

Balfour, Farrans, Graham and Morgan Sindall win major works lot
3 days ago

Site engineer crushed to death by excavator

22-year-old victim died just months after graduating from university
5 days ago

NG Bailey fined £135,000 after hospital site death

Worker died after striking overhead beam while navigating a mobile elevating work platform
5 days ago

Kier lands £30m Mansfield Connect project

Construction to start in January 2025 on town centre regeneration scheme
3 days ago

Award-winning steelwork firm files administration notice

Kelpies steelwork specialist SH Structures files court notice
6 days ago

Contractor services