Construction Enquirer News Bolton-based construction group cut headcount by 7% in streamlining
Seddon Group has lost or seen delayed around £25m of turnover because of the Covid pandemic, leading the Bolton-based firm to streamline with a 7% headcount cut among its near 700 staff.
The construction business is being realigned this year to improve the risk profile through controlled exposure to large projects.
This will see a continued investment in property services, maintenance and affordable housing while maintaining a limit on the number of large-scale general construction projects the firm undertakes.
In latest accounts published for last year, Seddon Group said it increased debt facilities in late June to £15m as a precaution to cushion against the impact of Coronavirus.
But trading and cash generation since then has been more positive and resulted in group net cash of £13.5m at the end of September, up from £9m at the start of the year.
During 2019, Seddon Group lifted revenue to £192m thanks to the main construction business, which raised revenue 13% to £150m, whereas Seddon Homes reported flat turnover at £34m.
Overall group pre-tax profit doubled to £3.14m.
The improved performance at construction returned it to profitability with an operating profit of £1.2m compared with a loss of £3.7m in the previous year.
Chief executive Jonathan Seddon said: “Out robust business model and balance sheet mean that we can be confident our future and our contribution to the recovery.
“The group has cash resources, which give it the capacity to invest in land and to build its land bank for residential, healthcare and commercial property development opportunities.”