Erith Contractors has posted healthy revenue and profits following a more than £17 million fine for illegal bid rigging.
Turnover for the year ended 30 September 2023 was £213.7 million, an 11.9 per cent increase on the previous reported year (FY2022: £191 million), with a pre-tax profit of more than £5 million (FY2022: £3.3 million).
The gross profit margin for the group fell to 7.5 per cent from 7.7 per cent, amid a highly competitive market.
Erith also saw an increase in its operating profit for the period of £4.2 million (FY2022: £2.4 million).
Profit for the year was nearly £4 million, compared to £3.1 million in 2022.
Net assets were valued at £14.7 million (FY2022: £13.2 million).
Interim dividends of £2.5 million were paid during the year, compared to £2 million in the previous financial period.
However, group directors did not recommend payment of a final dividend (FY2022: £Nil).
Illegal bid rigging
In March last 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.
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