Wates group has revealed that its building services business bought from Shepherd Building Group in 2015 continued to suffer losses last year.
Bosses at Wates predict that SES (Engineering Services) will now return to profit in 2017 as the impact of earlier management changes and a fresh three-year business plan transform the M&E contracting business.
The latest company accounts reveal that SES lost £1.5m in 2016, after running up a £22m loss in the 18-month period up to December 31. Revenue for the period reached £160m.
Wates bought SES in October 2015 from the Shepherd Building Group and published a 18-month previous year to bring the specialists accounts into line with its reporting.
David Allen, chief financial officer at Wates Group, said: “2016 has been a transitional year for the company. The integration plan established by Wates at the time of the acquisition has been implemented.
“A new management team has been put in place and a three-year strategic plan has ben developed to secure the company’s long-term growth and profitability.
“These changes began to influence the company’s performance in 2016. The results demonstrate that the business is heading back towards growth and profit , with a closing cash balance that more than doubled to £15.4m.”
He added: “The prospects for 2017 are strong and the business is forecast to return to profit.”
from Construction Enquirer http://www.constructionenquirer.com/2017/06/19/wates-owned-ses-suffers-1-5m-loss/
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