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Tue September 21 2021

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Covid constraints dent Spencer's results

7 Sep Engineering contractor C Spencer Ltd remained in profit last year but challenging market conditions dented its numbers.

A Spencer crew working on the Menai Bridge
A Spencer crew working on the Menai Bridge

Turnover was down a third and profit before tax was down 75%.

For year ended 31st March 2021, C Spencer’s posted turnover of £42.0m (2020: £63.5m) and a pre-tax profit of £526,000 (2020: £2.2m).

At an operating level, a profit of £442,000 was recorded thanks to £930,000 of Covid-related government grants.

The Hull-based company works mostly on rail, bridge and industrial projects but Covid-driven site closures in the early part of the business year resulted in low operating levels and operating restrictions. This caused delays on several projects and postponement of some newly-signed contracts, directors said. However, the business entered the current financial year with an order book of secured work totalling £53m and a strong pipeline of opportunities.

Since the financial year-end, the company has resolved an ongoing contract dispute, securing a £3.8m cash injection for works previously undertaken, which has boosted working capital reserves.

Parent company Spencer Engineering Group posted a pre-tax loss of £1.66m (2020: £23,000 loss) on £46m turnover.

Founder and executive chairman Charlie Spencer said: “Given the difficult circumstances over the past 18 months as a result of the pandemic, this is a positive set of results and our staff are to be commended for their efforts and commitment in what has been a very challenging period.

“We are now in the happy position of recruiting new staff to service our increasing order book.”

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MPU
MPU

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