Three problem contracts tipped Robertson’s construction business into the red last year, the Scottish contractor has revealed in its latest accounts.
Moray-based Robertson Construction Group said a review of “all construction projects” and “relevant operating procedures” had since been carried out to avoid future issues.
The firm recorded a pre-tax loss of £12.6m in the year to the end of June 2024, compared with a profit of £16.1m the year before.
“The group has not experienced construction losses of this magnitude over the course of its history,” Robertson said.
Two contracts turned loss-making in the year, which “severely” impacted the family-owned firm’s profitability, but have now been completed, it said.
Another “poorly performing contract” was not loss-making but saw a “considerable deterioration” in margin, according to the accounts.
That job “is now performing in line with revised expectations and [is] due to complete shortly”, the contractor added.
The identity and nature of the jobs were not identified in the accounts filed with Companies House. Construction News contacted Robertson for further information.
Turnover rose by 27 per cent, from £489.6m to £627.3m.
And the firm would have stayed in the black with a pre-tax profit of £22.7m, but for the £28.2m impact of the three contracts plus a £7m hit from provisions over “potential risk regarding cladding remediation and building safety legislation”.
Robertson reported cash reserves of £166m at year end, up from £130.3m the year before.
Its short-term repayable bank loan debt rose from £35.2m in 2022/23 to £44.5m last year.
Despite the issues with the three jobs, Robertson said that its regional business model saw three of its divisions produce profits “well in excess” of their business plans.
However, the firm did not include a detailed division breakdown in its latest accounts.
It paid out a higher shareholder dividend of £13.2m last year compared with £12.6m in 2022/23.
Headcount rose from a monthly average of 978 staff that year to 1,026 in the latest accounts. The contractor’s annual wage bill therefore rose from £56.1m to £62.6m.
Robertson said its current financial year had got off to a “very positive start” last summer with a “strong return to profitability”. However it said it was still managing labour shortages and “continued inflationary pressures”.
Robertson Construction Group’s parent firm was ranked 31st in last year’s CN100 index of top contractors. The group also works in facilities management and civil engineering.
