Roberston Construction’s 2024 annual report reveals that the company lost money due to two specific construction contracts making losses in the year, and a third performing below expectations.
Turnover for the year to 30th June 2024 was up 27% to £627m (£493m) but this growth was not without problems. The business sank to a pre-tax loss of £12.6m (2023: £16.1m profit).
At an operating level, it was a £13.4m loss (2023: £15.1m profit).
The three problem contract together knocked £28.2m off the bottom line.
The results also included a £7m provision for potential risk regarding cladding remediation and building safety legislation.
Parent company Roberston Group (Holdings) made a pre-tax loss of £9.7m (2023: £16.3m profit) on revenue up 23% to £825m (2023:£670m).
Chief financial officer Irene Wilson wrote in the Roberston Construction Group’s annual report: “A full review of all construction projects and relevant operating procedures has been undertaken given the experience on the three problem projects to ensure lessons are learned and fed back into our processes to ensure such losses are avoided in the future.”
She added: “The two loss making projects were completed by the year-end and the third challenged contract is now performing in line with revised expectations and due to compete shortly.”
Group chief executive Elliot Robertson said: “While we are disappointed, we remain steadfast in our ability to provide our customers with high-quality projects and services across our diverse portfolio of businesses.”
He added: “Having strengthened our governance, through the addition of industry leading people to our individual business boards, and our processes across all of our operations, each of our businesses are selectively identifying the right opportunities and are underpinned by our healthy cash balance and debt free balance sheet.
“Our profitability has bounced back strongly this year in line with expectations, and we have a healthy pipeline and strong customer relationships.”
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