A rise in profit in contractor-developer's construction division not enough to offset losses in property and residential parts of the business
Contractor-developer Pochin has made £9.4m loss on revenues of £102m in the year ending 31 May 2009, down from a £1.8m profit at the end of 2008.
It lost most (£4.3m) from its property division, which was £4.3m in the black last year. A rise in construction profit of £1.3m, up £1m on 2008, and a profit of £6.1m in its propert- owning division, was not enough to overcome further losses of £3.1m in residential (after impairments), and a concrete pumping loss of £1.5m.
The firm said it had reduced its fixed overhead 15% and that it had its borrowing down £1.4m over the year from an increase of £11.9m last year.
The firm said property impairments had wiped £11m of its profit line, adding: "The results for the year ending 31 May 2009 reflect the most dramatic and sustained collapse in property values in living memory."
It said it was cashflow positive and that it would not be paying a final divided.