French to rescue after Norwest loss

Norwest Holst has unveiled post-tax losses of œ22 million for 1993. Re-organisation and the 'significant costs of resolving long-standing contractual disputes' were blamed for the deficit, which brought the contractor's total losses in the last two years to œ45 million.

Norwest Holst's French parent, the œ5 billion-a-year group SGE, has underpinned the future of its UK subsidiary by investing œ40 million of new capital.

Without the new funds, Norwest Holst's balance sheet would have registered negative net assets of œ10 million, and the company would have been technically insolvent.

Instead, even after last year's loss, net worth rose from œ7.5 million to œ26 million.'This reinforces the financial capability of the group to withstand short-term market conditions,' said a Norwest Holst statement.

The grim outlook of the chief executive's report indicated that tough conditions would pose problems for some time.

John Stanion warned that public sector and private utility spending could fall, dampening construction recovery.