Building services firm reports deeper losses after exceptional charge

FK Group, Altrincham

Altrincham based building envelope contractor FK Group saw annual losses widen last year after the closure of its Dubai operation.

Figures filed at Companies House show a pre-tax loss for the year to March 31, 2018, of £1.473m compared with a loss the previous year of £213,844.

The overall loss for the year stood at £1.732m, against an overall profit of £398,055 the previous year.

FK’s 2018 figures included amortisation costs of £747,157, and an exceptional cost of £1.68m related to the closure.

Turnover fell from £76.28m in 2017 to £69.157m for 2018.

No dividend will be paid to shareholders.

However, the directors’ strategic report states that the company is in “a strong financial position at the year end, demonstrating the solid financial position of the company”.

The report added: “The group enjoyed strong performance in its core markets during the year.

“The company has a full order book for the year to 31st March 2019, with excellent visibility into the following year.”

It explained: “During the period the group closed its operation in Dubai, which resulted in a loss of £1.68m. This is shown in the group profit and loss account as an exceptional item.”

The directors’ report added: “We believe that the group’s strong order book, continuing deep relationships with our principal customers, and increased scope of activities to include complete building envelope solutions, will go a long way towards our group continuing to trade successfully and gain more opportunities in broader market sectors.”

And it said: “With a strong forward order book and strong and long standing relationships with customers and developers, the directors believe that the company can continue its strategy of sustainable growth in the next financial year.”

In 2016 the company established a new central London office in Shoreditch.

The company also operates offices in Doncaster, Birmingham and Newport.

Established in 1979, the family business’ services range from design, construction through to maintenance.

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