26th Sep 2013 12:31
LONDON (Alliance News) - Construction and property group Pochin's PLC said its losses widened for the full year, amid challenging market conditions for both its main divisions that resulted in property devaluations and impairments of investments and inventories.
The company posted net losses of GBP7.1 million for the period ended 31 May, down from a GBP3.3 million loss a year earlier.
However, revenue increased to GBP78.0 million from GBP71.6 million in 2012, boosted by a strong performance from the Pochin's construction arm.
The division saw revenue increase to GBP73.7 million from GBP68.4 million, despite weaknesses in the sector. Pochin's said almost two-thirds of the division's revenue was repeat business.
UK construction industry statistics showed a drop of 8.1% in total new, non-housing work in 2012, and this trend is set to continue into 2013, with a further drop forecast of 3%, Pochin's said.
The forecasts for the North West region are not as positive as those for the whole of the UK, reflecting the UK's North-South economic divide.
Cheshire-based Pochin's said it has therefore made the decision to continue to work outside its preferred North West and North Wales areas of operation for known and valued clients.
The property division experienced a mixed year, with secondary offices revaluations affecting the arm. Despite this, revenue increased GBP6.5 million from GBP4.9 million in 2012.
"Overall the investment portfolio maintained high levels of occupancy at 91.5%, a modest fall from the previous exceptional achievement," it said.
Employee numbers fell to 158 from 266, reflecting the sale of a concrete pumping business in July 2012.
Pochin's declared no final dividend, unchanged from the year before.
Pochin's shares were trading at 25.00 pence Thursday, down 4.50 pence or 15%.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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