Moray construction firm Robertson Group saw its profits collapse with three poorly performing contracts costing the business more than £28 million.
Newly filed accounts for the Elgin firm show its sales grew strongly to £824.9m for the year ending June 30 2024. This is a 23% increase from £670.9m.
But the group posted a pre-tax loss of £9.7m, compared to a £16.3m profit in 2023.
Robertson Group attributed this loss to the trio of poorly performing contracts, which resulted in a £28.2m loss.
In addition, the construction giant also made a provision to take account of changes to cladding legislation. This resulted in a further £7m write-down.
Despite the difficult year, chief executive Elliot Robertson says profitability has since bounced back strongly, with a healthy pipeline of work.
Positive outlook
Mr Robertson said: “The group delivered a strong underlying overall performance.
“The provisions made in relation to remedial legislation have had significant impact across the entire industry, and we have been working hard to respond to the matters that arose on the specific construction contracts.
“While we are disappointed, we remain steadfast in our ability to provide our customers with high-quality projects and services across our diverse portfolio of businesses.
“Our profitability has bounced back strongly this year in line with expectations, and we have a healthy pipeline and strong customer relationships.”
Notable building projects
Robertson Group was the main contractor for the £27m One SeedPod in Aberdeen with 348 workers and 11 apprentices involved in the build.
Other projects includes the Inverurie Community Campus, Moxy Hotel at Aberdeen Airport and The Treehouse in Inverness.
The average monthly number of employees during the year was 2,863, up from 2,705 in 2023.
Robertson has been climate positive since 2020, and by 2030 aims to generate zero emissions from its offices, commercial fleet and construction sites.
What does Robertson do?
Robertson provides expertise across the whole built environment lifecycle. Its activities include development, construction, facilities management, civil engineering, timber engineering, and strategic services.
The company plans, constructs, finances and manages buildings and facilities clients throughout the UK.
Sir Bill, 78, founded the business in 1966. As of February 20 2024, he owned 65% of it.
His son, Elliot, is now the group’s chief executive, having been appointed in 2020.
Robertson Group maintains its debt free balance sheet and a strong cash position of £82m.
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