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Forrest accounts reveal £15m loss over two years

Forrest has revealed a pre-tax loss in both its latest accounts and restated earlier accounts.

According to documents filed at Companies House, the Bolton-based social housing, residential and energy contractor reported a £2.2m pre-tax loss for the year to 29 February 2016, as well as a revised pre-tax loss of £13.4m for the 18 months to 28 February 2015.

Previous accounts filed by the company last year, for the 18 months to 28 February 2015, suggested the company made a £9.4m pre-tax profit in that period.

The firm attributed the restated losses to a full review of all the company’s contracts during the period, where a number of active legacy contracts were written off and other deals saw revisions to revenue and margin.

Forrest earlier this month announced it had reached a refinancing deal to help deliver its order book, with Greater Manchester Combined Authority replacing Royal Bank of Scotland as a lender to the group

The firm’s chief executive Lee McCarren departed the company by mutual consent in March, while 30 staff have been made redundant as part of a restructuring programme.

Timeline: Forrest

15 November 2015: Forrest files accounts with Companies House for the 18 months to 28 February 2015, showing a £9.4m pre-tax profit.

July 2016: Winding up petition issued against the company, but dismissed later the same month.

17 Feb 2017: Company announces a restructure with 30 staff made redundant.

3 March 2017: Announces departure of CEO Lee McCarren, and reveals a refinancing deal.

20 March 2017: Files accounts with Companies House which reveal £2.2m loss for the year to 29 February 2016, and restate previous results as a £13.4m pre-tax loss for the 18 months to 28 February 2015.

Forrest added that most of the revised contracts were in the firm’s refurbishment arm, rather than in its new build or energy divisions.

According to the company, only 20 per cent of its revenue will be through the refurbishment arm in 2017/18, with 70 per cent coming from new build.

Turnover stood at £103.5m for the year to 29 February 2016. It was revised to £126.4m for the 18 months to 28 February 2015, from a previously stated £152.7m.

Refurbishment made up £71.9m of the most recent annual turnover, while new build contracts accounted for £16.6m, and energy accounted for £14.9m.

Contract wins in the new build division in the past 12 months include a £20m PRS scheme for client X1 in Salford Quays, and a place on the University of Manchester’s £175m construction framework.

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