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