Careys looks to bounce back after £35m construction loss

Grant Prior 9 months ago

Civils and construction specialist Careys is looking to bounce back from a “turbulent” year which saw the main contracting business record a £35m loss.

Accounts filed for parent company Araglin Holdings Ltd for the year to September 30 2022 show a record pre-tax profit of £30m from a turnover of £366m bolstered by a £65m profit from property and land sales.

But the main contracting division was plunged into the red by a number of problem contracts, project delays and materials inflation on fixed-price jobs.

Careys told the Enquirer that the contracting business has returned to profit in current trading and contract-selection procedures had been tightened up.

Jason Carey, Carey Group Chief Executive Officer said: “A turbulent year resulted in a loss after tax of £35m for the construction side of the  business, caused by a raft of unprecedented challenges faced throughout the  industry from inflationary pressures and the war in Ukraine to the energy and cost of  living crises; as well as a combination of project delays, poor performing projects and contracts taken on with too much risk.

“However, with the second generation of the Carey family remaining committed  and close to the business, a focus on simplicity, getting back to basics and  transforming manual tasks, we have come out stronger, delivering some exceptional  projects with a 14% increase in turnover from our core contracting business.

“Looking forward, we are well positioned and on a strong, sustainable footing.  Current trading shows the contracting business returning to profitability and we  continue to move onward feeling positive. We have a strong order book of over  £600m and are well capitalised, leaving me feeling more confident than at any  point in my tenure to date.”

At 30 September 2022 the group had net assets of £157m which included £72m of  real estate and £73m of cash.

Careys said that over the next three years it will look to invest £25m in plant, facilities and technology.

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