Structure Tone stems losses as order book grows

Grant Prior 1 month ago

Fit out specialist Structure Tone managed to cut losses last year as the business was restructured and problem data centre contracts finally closed out.

New managing director Justin Fahy is confident of returning to profit this year
New managing director Justin Fahy is confident of returning to profit this year

Latest results for the year to December 31 2021 show a pre tax loss of £4.1m from a turnover of £77.1m compared to a £9.1m loss from revenue of £84.5m last time.

The results stated: “Alongside the close out of legacy projects, there was a need to right-size the infrastructure and fixed cost base of the business to fit with a sustainable model that could take full advantage of the post Covid opportunities that the London market would inevitably present.”

Staff numbers at the business fell to 105 from 119 in 2020.

Last month managing director Danny Blakestone left the business after two years at the helm.

He was brought in from ISG by Structure Tone’s US owners STO Building Group as part of a new management team charged with turning the company around after several years of losses.

Blakestone brought several former ISG colleagues with him to run the business, including commercial director Justin Fahy who has replaced him as MD.

Fahy said: “Structure Tone London had a strong work winning year in 2021.

“Despite a very positive outlook for 2022 we continued the restructuring of the business through 2021 including reducing our fixed overhead, securing our leadership team and the close out of legacy projects.

“We finished the year with a revenue of £77m and a loss of £4m. However, we are confident that we will return the business to profit in 2022.

“We are happy to report that we will exceed our budget in 2022 with a secured pipeline of £125m in year and a forward book of £87m for 2023.

“We are really pleased to see all the changes and hard work paying off with some extremely prestigious projects with highly valued clients.

“The outlook for Structure Tone London is now extremely positive.”

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