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More losses for Higgins

February 10, 2024
in Business
More losses for Higgins
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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 £25.8m on turnover down 20% to £171.9m (2022: £215.9m).

The FY 2023 loss follows pre-tax losses of £5.4m in 2022, £3.1m in 2020 and £4.0m in 2019. Only in FY 2021 has it recently made a profit, when it made £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 ‘build year’.

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 £9.01m.

Exceptional items totalling £14.7m have been taken into the 2023 accounts, including £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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Copyright for syndicated content belongs to the linked Source : TheConstructionIndex – https://www.theconstructionindex.co.uk/news/view/more-losses-for-higgins-1

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