Work expected to take up to eight years, housebuilder says
The cost of dealing with building safety remediation work helped send London-focussed housebuilder Galliard into the red last year.
The firm racked up a pre-tax loss of 拢12.8m in the year to March 2023, from a 拢4.6m profit last time, on turnover down 18% to 拢167m. Galliard posted a pre-exceptional profit of 拢11m but nearly 拢24m of exceptional items sent it to a loss.
It said the provision was for building safety work which it expected to be carried out over the next eight years.
Galliard鈥檚 executive chairman Stephen Conway said: 鈥淕alliard has always supported the principle that leaseholders should not have to pay for remediation in their buildings are we are committed to ensuring that leaseholders are not held responsible for the necessary remediation of their homes.鈥�
A note in the accounts said the firm has made a 拢39.6m provision, which included 拢30.7m for building safety work, as well as the cost of dealing with onerous leases and a HMRC matter.
The accounts also reveal the firm has paid a further 拢6.6m to an outgoing director, believed to be long-time chief executive Don O鈥橲ullivan, who announced he was leaving in December 2021. It includes a 拢2.2m 鈥渟ettlement payment鈥� for the termination of share options.
O鈥橲ullivan, who was appointed chief executive in 2017, later took up the same role at Inland Homes, now in administration, but left earlier this year after just over one month in the job.
Conway described 2023 as 鈥渁 more 鈥榖ack to normal鈥� year鈥� but cited lower construction activity, fewer completions, the rise in inflation and the war in Ukraine among the reasons for this year鈥檚 fall in turnover.
Yesterday, the firm announced that it and Singapore-based City Developments Limited had bought the Morden Wharf development in South-east London for an undisclosed sum from developer LandsecU+I and Morden College charity.
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