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News » UK » Building defects push PFI vehicle into loss » published 21 Aug 2017

Building defects push PFI vehicle into loss

Edinburgh Schools Partnership, the PFI company hit by building defects last year, has reported a loss in its latest accounts.

Nine tonnes of masonry collapsed when a wall failed at Oxgangs Primary School in January 2016 Above: Nine tonnes of masonry collapsed when a wall failed at Oxgangs Primary School in January 2016

In the year to 31st March 2017, Edinburgh Schools Partnership made a loss of £3.3m before tax for the year. Turnover was down from £11.3m the previous year to £6.3m.

Edinburgh Schools Partnership has a 30-year contract to look after 18 schools in Edinburgh as well as a community centre.

On 29th January 2016 an external wall at Oxgangs Primary School collapsed. Subsequent investigations on that wall and at three other schools uncovered varying degrees of building defects. Closure of schools for building repair works meant availability penalties were incurred.

In the financial statement for the year ended 31st March 2016, a provision was made for £2.8m to cover rectification costs and availability penalties. This provision was fully used in the following year.

Additional costs of £1.4m were incurred in the year to 31st March 2017.

 

 

MPU

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This article was published on 21 Aug 2017 (last updated on 21 Aug 2017).

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