Erith Group has published a trading update for the year ended 30 September 2022 – following a more than £17 million fine for illegal bid rigging.
In March this year, the Competition and Markets Authority (CMA) fined Erith £17,568,800 for colluding on prices through illegal cartel agreements when submitting bids in tenders for contracts between January 2013 and June 2018, as part of an investigation which saw 10 construction firms fined a total of nearly £60 million.
In addition to construction, the business specialises in civil engineering, asbestos removal, demolition, ground works and remediation, haulage, landfill operations and waste handling.
The main activity of the company during the year was contract demolition.
- Turnover: £191,054,513 (FY2021: £163,348,539)
- Gross profit: £14,638,722 (FY2021: £15,751,807)
- Operating profit: £2,439,907 (FY2021: £5,006,298)
- Pre-tax profit: £3,368,410 (FY2021: £5,407,000)
- Profit and loss (P&L) acc: £13,175,632 (FY2021: £11,977,371)
- Cash (at bank and in hand): £19,837,705 (FY2021: £11,558,353)
Total profit and income was £3,198,261 (FY2021: £4,764,319).
Net assets and shareholder funds were at £13,250,632.
Interim dividends of £2 million were paid during the year (FY2021: £5 million). However, directors did not recommend payment of a final dividend.
“The market remains highly competitive coupled with a challenging economic climate,” the Group said of its profit margin.
“The directors are optimistic about the year despite believing that the challenging economic climate will continue into the new year.”
It added: “The company was subject to a regulatory investigation by the Competition and Markets Authority (CMA). Since the year end, the investigation has concluded and the fine arising will be met by the Company’s parent.”
Enjoyed this? Try R J McLeod reports loss in profit
Get industry news in 5 minutes!
A daily email that makes industry news enjoyable. It’s completely free.