London fit-out specialist falls nearly £8m into the red

London

October 07, 2019 – London fit-out specialist Structure Tone ran up a £7.9m pre-tax loss last year due to two problem jobs.

The firm, which is part of $4.3bn global construction services business STO Building Group, said it expected to recover this year after securing major orders, including a £60m office revamp for ad giant WPP.

Dean Manning, managing director of the UK business, said: “2018 was a strong underlying year with revenues matching 2017 revenue of £105m. 

“But, the company also managed two difficult contracts which encountered design and programme issues. 

“One project was completed in 2018.  The other project completed earlier in 2019.  These losses resulted in a 4.3% margin loss. 

He said: “One project has subsequently been commercially agreed at a position better than the 2018 provision.  Discussion and negotiations on the other continue.”

Manning said that Structure Tone had engaged in a full review of its project management strategies, making changes to both management and controls.

He added: “The directors and shareholders remain confident in the strategy, further opportunities and long-term growth in the UK market. “

As a result, he said shareholders increased the equity of the company by £4.5m. 

Manning predicted revenue this year would exceed 2018 with a return to strong positive cash flows.  

Established 31 years ago,  Structure Tone (UK), delivers projects up to £75m, although its core business involves contracts under £5m for clients who are renovating or expanding their facilities. 

Source:-http://www.constructionenquirer.com/2019/10/07/london-fit-out-specialist-falls-nearly-8m-into-the-red/

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