Profits dive at Pochin’s
CONSTRUCTION and property group Pochin’s has revealed a dramatic slide in profits as the group continues to do battle with tough market conditions, particularly in the North West.
In the year to May 31, pre-tax profits fell to £1.8m compared to £9.1m last time, turnover fell slightly from £116.6m to £115.3m.
Pochin’s chairman Richard Fildes said given recent events in the financial markets, commenting on the group’s prospects was “unusually perilous”.
He blamed the massive fall in profits on a number of factors including the wholesale reassessment of property values, which has seen credit dry up and demand fall.
He said the construction services division ha been affected by weakening demand and sharply increasing fuel prices, with the midlands and north worst hit.
Pochin’s homes division has suffered a severe downturn and Mr Fildes said there has been no improvement since the year end in May. However, the group’s contracting operations, which were recently restructured, have remained largely unaffected.
While Mr Fildes admitted that group’s prospects depend on external forces such as more stable conditions in the financial markets. Pochin’s strong relationship with its bank, prudent approach to speculative development and strong balance sheet will prove very important until conditions improve.
He added: “Pochin’s has a well deserved reputation that will sustain it through the current adverse circumstances, enabling it to benefit from the many opportunities that will arise as confidence and credit returns to the property market.”
