Rydon dogged by legacy fire safety remediation costs

Aaron Morby 2 weeks ago
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Legacy fire safety work continues to be a drag on Rydon Group’s financial performance.

On-going fire safety work at the Packington Estate in Islington
On-going fire safety work at the Packington Estate in Islington

Revenue across the parent group fell by nearly a third last year to £64m with the group managing to generate a £560,000 pre-tax profit following a £11m contribution from Rydon Homes.

Rydon Construction, which has been wound down with the exception of working through existing legacy contracts, suffered a £9.7m loss (2022:  £3.9m loss) from £0.6m revenue in the year to 30 September 2023.

To date Rydon has spent £19m on remedial fire safety works on over 500 flats, including the firm’s award-winning Packington Estates redevelopment in North London.

The group’s other main subsidiary Rydon Maintenance, which was involved in the Grenfell project, delivered a £600,000 profit on stable revenue of £43m.

The latest accounts reveal Rydon had drawn down £20m of a total £27m provision for Grenfell following a civil action settlement with more than 900 survivors and bereaved family members of the tragedy last July.

The remaining provision was also topped up with an extra £6.3m last year.

The firm said negotiations continue with individuals not involved in the settlement plus emergency services first responders for fire and police services.

Cash at bank fell to £11.5m from £25.5m in the prior year.

 

 

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