Pre-tax profit at Shepherd Group has almost halved after a 拢14m hit on a delayed scheme in Nottingham.

In the year to 30 June 2008, the figure fell 46% from 拢42.2m to 拢22.9m despite a 5% increase in turnover from 拢685m to 拢718m. It pushed the construction division 拢1m into the red on the back of turnover of about 拢323m.

The 拢47m Trinity Square project in Nottingham, which was to provide accommodation for students at Nottingham Trent university, was built for developer Helical Bar. The final phase had been scheduled for completion in October 2007 but was handed over this summer.

In the same week as news of the loss emerged in October, former chief executive Vaughan Burnand left the company.

Alan Fletcher, chairman of Shepherd Group, said: 鈥淧erformance on most jobs was satisfactory but a major loss arose on one contract. Changes have been made at the business to strengthen the team and to reinforce the culture of risk management.鈥�

Shepherd鈥檚 property arm made a loss of 拢6.6m on turnover of 拢50m. Its manufacturing division, which includes Portakabin, made a pre-tax profit of 拢31.2m on turnover of 拢225m; its engineering division made 拢2.5m, its best ever result, on turnover of 拢122m.

Topics