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More losses for Higgins

9 Feb Accounts posted by Higgins Group show a fourth loss-making year out of the past five.

New chief executive Declan Higgins
New chief executive Declan Higgins

For the year ended 31st July 2023, Higgins Group made a pre-tax loss of 拢25.8m on turnover down 20% to 拢171.9m (2022: 拢215.9m).

The FY 2023 loss follows pre-tax losses of 拢5.4m in 2022, 拢3.1m in 2020 and 拢4.0m in 2019. Only in FY 2021 has it recently made a profit, when it made 拢203,000 before tax.

The latest financial report attributes the fall in turnover to a combination of the introduction of secondary stair cores for high-rise buildings causing delays to scheme starting and Higgins Homes having a 鈥榖uild year鈥.

Profitability was impacted by build cost inflation, which in turn has led to project delays and consequent further erosion of margins. Total operating loss for the year before exceptionals was 拢9.01m.

Exceptional items totalling 拢14.7m have been taken into the 2023 accounts, including 拢13.5m of provisions for remediation work to previous project to comply with changes in post-Grenfell building regulations.

Since the end of the last financial year, management of Higgins Group has transitioned from the second to the third generation of the Higgins family. [See previous report here.]

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