Shepherd Group's chairman has expressed his optimism for the future, with a focus on its profitable Portakabin business, after the group posted a multimillion-pound loss on the back of a major restructure.
The company reported a net profit on ordinary activities from continuing operations of £36.7m for the 18-month period to 31 December 2015, although made an overall loss after taxation of £28.1m. Following a restructure in 2015, the group's business is now focused on Portakabin and is looking to further develop the division in the UK and overseas.
During the restructure, Shepherd Group divested its Built Environment businesses. Shepherd Engineering Services and Shepherd FM, together with a significant number of contracts and strategic frameworks from Shepherd Construction, were sold to Wates Group, while the Shepherd Homes business was sold to Galliford Try's house building arm, Linden Homes.
The divestments were in line with the board's strategy to improve the quality of earnings by growing the profitable, lower risk businesses and reducing exposure to less profitable, higher risk operations.
During the restructure process Shepherd Group's board of directors approved a change in the company's fiscal year end from 30 June to 31 December 2015.
In this 18-month reporting period there was a strong performance by Portakabin, but the former Built Environment businesses recorded a loss which, along with disposal and restructure costs, resulted in the overall loss.
Shepherd Group recorded a turnover of £879.5m during the 18-month period and a balance sheet with net worth of £182.9m and cash of £28.1m.
Shepherd Group chairman David Williams said: "These diverse results illustrate both the recent past and the promising future of the Shepherd Group.
"The past is reflected in the losses arising out of a small number of very challenging legacy contracts experienced by the divested contracting businesses.
"We recognised these operations needed greater scale to deliver the full potential offered by their exceptional technical capability and they were successfully transferred to Wates Group who are well-positioned to strategically exploit these businesses.
"Our efforts are now very clearly focused on Shepherd Group's future which is represented by the continuing success and profitability of Portakabin.
"The further development of this market-leading business is in line with our strategy of investing in high-performing businesses consistently growing shareholder value."
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