Exceptional items drag profits down to £0.7m though group reports record order book
Robertson Group has reported pre-tax profits of just £0.7 million for the financial year despite turnover rising 16 per cent to £268.7 million.
The Elgin-based construction, infrastructure and support services group, which employs more than 1,000 people in Scotland and the north of England, said restructuring costs brought “a number of exceptional items” which impacted on group pre-tax profits.
Although earnings before interest, tax and depreciation rose from £1.8 million last year to £6.3 million, £2.8 million in exceptional items impacted on profits for the year to March 30, 2012.
Excluding these one-off administrative expenses, group pre-tax profits were £3.43 million, down 47 per cent on the £6.52 million reported the previous year.
And when exceptional items are included, pre-tax profits were down 89 per cent on the previous year.
Robertson said during 2012 it had divested four non-core investment properties which brought in £5.5 million.
Exceptional costs in the year included downsizing its timber engineering business, divestment of two of its property special purpose vehicles and bid costs related to a failed Irish project which Robertson had been named preferred bidder on.
Turnover from 14 PFI joint ventures Robertson holds a stake in rose from £27.4 million last year to £42.6 million.
Stripping out joint venture revenues, group turnover rose from £204.5 million in 2011 to £226.1 million.
The group's forward order book is reported to be “better than it has ever been” with work valued at £1.5 billion.
Robertson said it “continues to pursue its strategy of investment and delivery in PFI/PPP style projects, securing long term value creation for the group”.
The group reduced its net debt by £6 million in the financial year to now stand at £50.1 million, having reduced net debt by £27.3 million the previous year.