UK scheme racks up 拢2.8m exceptional charge
Problems at an unnamed scheme in the UK have blown a near 拢3m hole in Broadway Malyan鈥檚 accounts, the company has revealed.
In its latest accounts filed at Companies House, the firm said it has been forced to book a 拢2.8m exceptional which it said 鈥渞elates to an onerous mixed-use project in the UK鈥� adding that it had 鈥渢aken the current and expected future loss into this year鈥檚 accounts鈥�. Broadway Malyan said the scheme 鈥渨as entered into during the recent recession鈥�.
The news meant that profit at the business nosedived 79% from last year鈥檚 拢2.9m 鈥� although the firm remained in the black posting a pre-tax profit of just under 拢600,000 in the year to April 2016.
Turnover slipped 8% to 拢46m with overseas revenue down 12% - but workloads in the UK stayed broadly flat at 拢19.5m.
In a strategic report signed by managing director Gary Whittle (pictured), the business said overseas workloads had been hit by an economic downturn in China, a recession in Brazil and falling worldwide oil prices.
And he warned that workloads would continue to be hit by a weak global economy and said the UK had 鈥渃ooled a little鈥� following last June鈥檚 EU referendum and the decision to leave the bloc.
He said high end residential development had slowed meaning that it was 鈥渇ocusing our near-term strategic growth plans in other geographies and sectors鈥�.
Whittle said it had won a number of contracts overseas, including a new office in Dubai for banking giant HSBC and its first major scheme in the US, a cruise terminal in Miami.
The firm employed 559 people at the year end 鈥� up from the previous 530 鈥� with the highest paid director, who is not named, picking up 拢290,000, up from 拢208,000 last time.
No comments yet