£4.75m building work provision tips Higgins into the red

Aaron Morby 2 months ago
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Essex-based contractor Higgins Group was plunged into a loss last year after making a £4.75m provision for remediation work on completed housing schemes.

The legacy jobs from the partnership side saw the group record a pretax loss of £5.4m after a £200,000 profit in the prior year.

Revenue in the year to July 2022 was up 39% to £210m, helped by a surge in post Covid lockdown activity.

This saw average headcount jump by around 90 staff to 318 as the firm took expanded contract teams.

Chairman Richard Higgins said: “During the period it has become clear that some of the historic projects of the group were not built in accordance with the current interpretation of building regulations.

“In all cases we have sought to cooperate with the clients to agree a strategy for rectification.

“An allowance has been made in the period of £4.75m to cover the costs of these works across the relevant sites. ”

He added that despite the present market challenges, Higgins was now reaping the benefits of steps taken in previous financial years to position itself more suitably for the future.

He said: “Higgins Partnerships and Higgins Homes have first class relationships throughout their operational area of London and the Home Counties and uses this to seek out strategic partnerships within the area.

“The continued support of housing associations and local authorities has seen the group land multiple new opportunities.”

 

 

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