Results filed by Rydon Group show that in the year to 30th September 2023 it made a pre-tax loss of £9.1m (2022: loss £5.9m) on turnover of £47.5m (2022: £51.9m).
Parent company Rydon Group Holdings made a pre-tax profit of £600,000 (2022: £6.2m) on turnover of £61m (2022: £91m), thanks to the inclusion of Rydon Homes, which made a profit of £11m before tax on turnover of £15.8m.
Rydon no longer operates as a design and build contractor, other than in relation to run-off or legacy projects.
“In relation to legacy projects, Rydon Construction has been and is continuing to address fire-safety remediation issues that were originally signed off as compliant by either Local Authority Building Control or the NHBC but have subsequently and retrospectively been reinterpreted as non-compliant under the umbrella of the Building Safety Act.
“To date we have spent over £19m on remedial fire safety works. This has included more than 500 apartment properties – built in partnership with housing associations – where Rydon Construction has or is in the process of completing these works. We have also committed to a future spend on remedial fire safety works and are working closely with our supply chain partners, designers, consultants and insurers to meet the updated requirements for fire safety compliance.”
The results for Rydon Construction show turnover of just £600,000 (2022: £5.4m) and a pre-tax loss of £9.7m (2022: £3.9m).
Rydon Maintenance turned over £43.5m (2022: £42.6m) and made a pre-tax profit of £600,000 (2022: £700,000).
“Supply chain disruption, escalating costs and wider uncertainties have had a significant impact on business confidence throughout 2023. The year has been sandwiched between a fuel crisis at its start and cost of living pressures at year-end,” chief executive Robert Bond writes in the annual report.
“FY24 is set to remain unpredictable due to the conflict in Ukraine, rising energy prices and the general rise in prices for the cost of goods and materials. Industry-wide cost liabilities following the introduction of the Building Safety Act will continue to have an impact on our construction business with its focus on legacy works and remediation, albeit that we have been addressing fire-safety issues long before any requirement to do so under current legislation.”
In relation to the June 2017 Grenfell Tower fire, and Rydon’s role in the scandal, Robert Bond – who also owns the company – set out the case for his defence in the annual report: “The public inquiry finished heading evidence in November 2022 and final report is expected mid 2024. The inquiry considered many aspects in relation to the tragedy including the tower’s refurbishment [for which Rydon was the contractor], the cladding and insulation products, the testing of these products and the information provided by their manufacturers, the architect’s design, the scope, guidance and adequacy of relevant legislation and the cause and progression of the fire.”
He continues: “Along with many other contractors and developers, Rydon used cladding in its partial refurbishment of the building which was marketed widely by its manufacturers. It is now apparent the manufacturers circumvented fire regulations to assist in the marketing of their products and the certification process was very weak.
“Consequently, a large number of projects were commissioned by bodies such as housing associations, local authorities and private developers, which deployed similar cladding products on 600 buildings across the UK. Grenfell Tower was only on such project.
“The government finally admitted publicly five and a half years after the tragedy in early 2023 its acceptance that the revenant Building Regulations were ‘faulty and ambiguous’.
“Civil proceedings have been issued, served and stayed on a number of parties involved in the inquiry including Rydon Maintenance Limited. An ADR (alternative dispute resolution) process was started involving those individuals affected by the tragedy, companies party to the inquiry and their insurers. During the year a settlement has been agreed between the parties and the majority of the individuals affected, known collectively as BSR Cohort 1.
“There continue to be ongoing discussions between the parties and those individuals not included in the BSR Cohort 1 settlement plus the emergency responders to the tragedy made up of individuals from the fire service and police services.”
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