Problematic Contracts Drag Morgan Sindall into the Red
Morgan Sindall reported pre-tax losses of £27.2m down from £13m, during the first half of this year, and is currently scaling down its operations in London and the South East, pulling back it’s bidding for new projects in the region.
The losses have arisen from two problematic contracts as Faslane in Scotland for the design and construction of a floating submarine jetty which was finished more than three years behind schedule, as well as the design and construction of living accommodation and infrastructure at the naval base.
For more information about the floating submarine jetty project click here.
Despite the company setting aside £35m in May to cover the losses, they have now increased to £39.4m.
It was reported that commercial resolution ‘in principle’ had been achieved on one of the two contracts, and this will likely set a precedent on the other project. The deal is said to have been reached on the living accommodation project.