Shepherd counts cost of construction exit six years on
The family-owned Shepherd Group is still counting the cost of legacy construction arm activities six years after selling the construction business to Wates.
According to latest accounts for the Shepherd Group, which now primarily covers the activities of the Portakabin business, obligations on previously completed projects by Shepherd Construction are still costing the group dearly.
This rump of the group recorded a £31m loss last year relating to the completion of a retail and residential complex in Colindale, North London and significant additional provisions in relation to claims on completed contracts where there remains uncertainty about the outcome.
The firm said it had been notified of some latent defect claims, including significant claims relating to items arising on historic building design issues, particularly in relation to cladding design and other fore safety issues.
Shepherd Construction pre-tax losses202020192018201720162015*-£31.3m-£21.4m-£13.8m-£31.7m-£9.7m-£60.6m*Shepherd Construction sold on 30 September 2015 to Wates. Liabilities retained by group
The company no longer trades construction contracts and the accounts were not prepared on an ongoing concern basis.
Overall the group recorded a £49m profit, up from £45m on revenue slightly ahead at £348m.
During the year the modular and portable building arm increased profit by 27% to £81m.
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