Façade specialist Yuanda UK has said it is financially secure thanks to backing by its parent company, following a series of losses reported in its latest trading update.
The London-headquartered envelope contractor reported an operating loss last year of £11.8 million, compared to the modest £634,543 profit it saw in the prior financial year.
It said the result was mainly due to the “prolonged programmes” of seven major projects active during the year which then carried over into 2024.
The company’s principal service is the supply and installation of curtain walls, windows and doors to the commercial and residential sectors of the UK construction market.
However, it also has operations in France, Germany, Sweden, Italy and Denmark.
Turnover for the year ended 31 December 2023 was nearly £51 million, a major decline from the £103.3 million achieved in the previous financial period, generating a pre-tax loss of £11.8 million (FY2022: £632,656 profit).
At the year end, Yuanda UK’s balance sheet had net liabilities and total equity of £11.7 million, deeper than the £360,795 the year before, with cash reserves of £1.2 million, roughly in line with FY2022.
The group posted a loss for the year of £11.3 million, following a £599,447 profit in the prior trading period.
Consequently, the directors did not recommend payment of a final dividend.
Yuanda UK is dependent upon the continuing support of its ultimate parent company, Yuanda Europe.
It said: “The directors of the ultimate parent company have confirmed their intentions to continue to provide adequate financial support to the company for the foreseeable future.”
Was this interesting? Try Tough trading takes toll on M&J Evans Construction
If you have a tip or story idea that fits with our publication, please contact the news editor rory@wavenews.co.uk
Get industry news in 5 minutes!
A daily email that makes industry news enjoyable. It’s completely free.
