Piling specialist Keller has reclaimed £14.3m of £54m it set aside in exceptional charges following a problem warehouse building contract.
Keller set aside the £54m charge in 2015 and bought the warehouse for £62m last May.
The building at Avonmouth in Bristol was completed in 2008 but was the subject of a long-running contract row after main contractor VolkerFitzpatrick claimed defective piles on the job caused cracking of the floor slab.
A flurry of legal action taken by all sides involved in the scheme which was all settled in February 2015.
Keller decided to buy the building and fix the problems before selling it on.
Latest results for the firm show it has recovered £14.3m in insurance payouts, rental income and an increase in the buildings estimated value to £54m.
Keller said it “remains confident of recouping most, if not all, of the consideration on sale.”
Keller reported healthy trading in the UK where it is targeting an increase in infrastructure work.
The firm said: “The UK had a good year in 2016, working on a wide variety of commercial and infrastructure projects.
“The business had fewer poorly performing projects than in recent years, following extensive work on tendering and execution disciplines.
“Whilst we have seen some market slowdown recently, much effort is currently being devoted to securing significant work on the major infrastructure projects coming up in the UK.”
Group pre-tax profits dipped to £85.1m for the year to December 31 2016 from £95.7m last time due to difficult market conditions in Asia and Singapore.
from Construction Enquirer http://www.constructionenquirer.com/2017/02/27/keller-reclaims-14-3m-of-warehouse-row-cash/
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