Shepherd Group has reported a pre-tax loss of 拢1.5m for the year ending 30 June 2009 after being hit with 拢26m of exceptional costs.
The family-owned construction business, said earnings before interest, taxes, depreciation, amortisation and exceptional items (EBIDTA) were 拢45.3m, but the exceptionals resulted in a 拢1.5m pre-tax loss.
The largest of these charges was 拢12.4m, due to聽the postponement of building work on the Trinity Walk shopping development in Wakefield last year, which Shepherd was main contractor. However, work is set to restart on the scheme.
Other exceptional costs were commercial property revaluation (拢7.8m) and reorganisation costs (拢4.9m).
The Group's turnover for the year fell by 2.3% to 拢701m (2008: 拢717.5m).
Shepherd employs around 3,300 people, its operations divided into three divisions: industrial; construction and engineering, which includes Shepherd 榨汁姬; and property, which comprises Shepherd Developments and Shepherd Homes.
Group chairman Alan Fletcher said: 鈥淚n the face of such challenging market conditions, the business continues to generate cash and the balance sheet is exceptionally strong, particularly in comparison with competitors.
"Debt is a modest 14.7% of shareholders鈥� funds and the group is operating well within bank facilities, which were recently renewed on favourable terms in the present climate.
鈥淭he group鈥檚 2009 earnings of 拢45.3m is, I believe, a good level in the current recession. For comparison, the 2007 figure of 拢53.4m, the highest in the group鈥檚 history, was recorded in much more favourable conditions."
However, Fletched added that the recovery remained "sporadic and fragile", with reduced orders in the industrial and construction and engineering divisions leading to a number of "unavoidable" redundancies.
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