Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Shepherd returns to pre-tax profit

Shepherd Group remains cautiously optimistic over the short and medium term despite announcing a pre-tax profit of £16 million.

Group chairman Alan Fletcher said it was well placed to fully exploit opportunities thanks to restructured banking facilities - despite a significant reduction in turnover.

The company posted a £1.5m loss last year, although that figure included an exceptional £12.4m cost suffered by Shepherd Construction due to problems with the Trinity Walk development in Wakefield.

Operating profit before exceptional items fell by just £1m to £23.6m. However, turnover for the year to the end of June plunged by almost a quarter to £526.7m.

Mr Fletcher said: “We must be cautious about short to medium term prospects at this uncertain point in the recovery from the worst global recession in living memory.

“However, the actions taken, and the advantageously restructured banking facility which we enjoy, enable us to exploit fully opportunities arising now and in the future.”

Turnover fell by 43 per cent in Shepherd’s built environment division, which suffered an operating loss of £2.1m, while the SES business recorded a pre-tax profit of £2.5m with turnover down 14 per cent. The industrial division’s pre-tax profits slipped £3.1m to £24m as turnover in the Portakabin operation fell by nearly 14 per cent.

In sharp contrast, the property division capitalised on greater activity to increase turnover to £38.6m and cut losses from £17.4m to £6.4m.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.

Related Jobs