Keltbray has said the company is undergoing a “transition period” after which it intends to operate as a specialist asbestos removal contractor, to improve its position within highly regulated markets and on complex projects.
In a recent financial statement, Keltbray said the company will become focused on handling highly regulated waste products within the construction sector, by training its own workforce and relying on its own internal design team.
“The strategy of the directors is to operate as a specialist asbestos removal contractor, employing, managing and training its own employees and utilising where possible its own internal design expertise,” a financial statement reads.
“This gives the company the capability to manage complex projects with a higher risk profile or in highly regulated market sectors, which will provide a return appropriate to the level of investment it is making in resource and capability.
“The directors expect that once the transition period comes to an end that the company will become focused on asbestos removal and related highly regulated waste products and the directors’ efforts will be focused upon their strategy to continue to grow the size and profitability of the business.”
As part of “revised operating procedures”, Keltbray has also transferred most of its assets and liabilities to its subcontractor partner, Keltbray Built Environment, as part of a group reorganisation, with interest rate exposure now sitting within that company.
“The company’s revised operating procedures expose it to limited financial risks that include the effects of credit risk, liquidity risk limited to its subcontract partner Keltbray Built Environment Limited,” Keltbray said.
It follows Keltbray incurring an operating loss of £12.4 million for the year ended 31 October 2024, on top of a £1 million loss in the previous trading period.
The company suffered a total loss for the year of £13.8 million (FY2023: £1.1 million loss), against revenue of £106.2 million, down from £137.4 million in 2023.
And while the Surrey-headquartered contractor ended the year with a stable cash position of £7.7 million (FY2023: £7.5 million), with no net bank debt, it was trailing -£23.1 million in net liabilities, compared to -£9.2 million in the previous trading period.
Meanwhile, Keltbray’s Built Environment (KBE) business recently returned to profit after taking a more ‘rigorous’ approach to project selection, prioritising quality of earnings over sheer volume as well as shoring up its operational strategy.
For the year ended 31 October 2024, KBE reported profit of £3.2 million, up from a £104,000 loss the year prior, supported by a 17 per cent increase in revenue. At the year end the business’ balance sheet remained debt free, with cash reserves up by £5.8 million.
Keltbray also said despite its contracting businesses accounting for most of its turnover, its workload mix is changing to include more residential and infrastructure projects “over and above” its more established commercial base load.
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