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McLean in red after costs spiral

NEWS

DAVID McLean's contracting arm has careered into the red after cost overruns on student accommodation projects in Liverpool and Manchester.

In the year to June 2005, McLean's contracting arm lost £2 million before tax after posting a £3.8 million profit in the previous 12 months.

McLean said: 'While the losses made by David McLean Construction Division in 2005 were disappointing they must be viewed in context. The group as a whole made a £5 million profit and it remains as strong as ever.

'The figures for last year were submitted for year-end June 2005 and are now historic. This was the only loss that the construction division has made since 1972.

'The retail arm of the construction division actually made a profit in 2005. But loss-making schemes within the main contracting division ? all of which have now been cleared from our portfolio ? created the loss.

'Our trading account figures show the construction division is on track to be back in profit come 2005-06 year's end.' Turnover also sank at McLean's contracting arm, dropping £32.2 million to £92.2 million.