McGee in £2.4m provision for bid-rigging probe

Aaron Morby 2 months ago
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Specialist engineering and demolition contractor McGee Group has revealed that a £2.4m provision taken in previous accounts should cover the financial cost arising from its involvement in a bid-rigging probe by the cartel-busting watchdog.

In the latest company accounts, McGee said that a £2.4m provision taken in 2020 would cover an expected penalty from the Competition and Markets Authority investigation into cover pricing in the demolition sector.

The CMA announced last week that McGee was one of 10 firms provisionally found to illegally have colluded in bid-rigging for demolition and asbestos removal contracts.

In a statement from the contractor, a spokesman said: “McGee has co-operated fully with the CMA.

“Having reached a final settlement position, McGee has certainty over the quantum of its fine and has made full provision in its previous audited financial statements.

“Accordingly, there will be no further financial impact on McGee arising from the investigation.”

Latest financial accounts published a day before the CMA revealed the extent of the cover pricing ring showed that McGee recovered strongly last year from the impact of the pandemic.

Turnover in the year to November 2021 jumped 21% to £92m as pre-tax profit rebounded to £6m from £1.4m in the previous year.

McGee also committed to pay out just over £600,000 to staff after its first full year as an employee ownership trust.

Group managing director Seb Fossey said that the new leadership team had placed significant focus on top-down compliance.

This had supported the development of consistent processes and procedures, clear Governance around key business decisions and the evolution of a strong compliance culture.

At the start of last year, this was reinforced by the appointment of Vivienne Inmonger as head of Legal Risk and Compliance.

She joined from her post as legal counsel at the world’s largest renewable energy company RES.

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