Contractor’s full-year results show turnover down 43% but loss is reversed
Shepherd Construction has reversed last year’s loss to turn a small profit, its annual results revealed today.
It followed last year’s £10.5m loss with a small profit for the year to June 2010 of just £61,000.
This contractor said that its profit was restricted by wider economic conditions and by an outlay of £2.2m on redundancy costs as part of a restructuring process.
Turnover fell 43%, however, down from £326.9m to £185.2m this year, which the firm attributed to “market conditions and project slippage”.
An operating loss last year of £16.8m was reduced to £2.1m in the year to June 2010.
The firm’s balance sheet remained stable during the year, with net assets remaining at £16m.
Shepherd said it was focusing on the elimination loss-making projects, active management of the risks of economic uncertainty, and retaining and recruiting suitable employees.
The contractor said: “The business is now in a stable situation… and is therefore in a good position to grow profitably.”