Construction firm eyes return to profit after tough year

A Gateshead-based construction company is eyeing a return to profit after project delays resulted in the business reporting a loss in its latest accounts. Meldrum Construction Services made a pre-tax loss of £1.2m in the year to 30 November 2018, down from a profit of £623,000 in the previous year. The company said it had absorbed the losses and maintained a cash positive position. Major project delays, which Meldrum said were out of its control, resulted in the business losing £10m worth of potential revenue in 2017/18. The delays, which related to two large projects, led to the business incurring some exceptional costs as well as inefficient patterns of working. Despite this, Meldrum managed to increase its turnover to £26.2m, up from the £25.8m it recorded in 2017, with the company saying that the figure should have been considerably higher given the portfolio of work that was secured at the beginning of the year.

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