S Harrison Group unveils £1.9m loss

S Harrison Group is the second construction group to announce a loss this morning. After a pre-tax profit of £3.2m in 2004, it stumbled to a £1.9m loss last year.

Latest financial results (12 months to 31 December 2005) from the construction and development group based in Malton, North Yorkshire, show turnover at £30m, a drop of £5m over the previous year.

Martyn Harrison, chairman, describes the latest performance as “a disappointment in financial terms”.

In his report he says that the market entry cost of establishing a strong South Yorkshire presence, the learning costs associated with perfecting the skills of building brownfield medium-rise residential accommodation and delays in the planning process, all hammered profits.

“We face the ongoing challenges of recruiting good staff and finding more efficient methods of working to keep costs down,” said Harrison. “By addressing these issues, despite disappointing financial performances, we have emerged from 2005 as a stronger organisation.”

The group has two operating divisions: construction and development. A reducing proportion of the construction workload is now undertaken for Harrison’s sister division.

Harrison anticipates the group getting back onto its feet financially, pointing out that 2004 was a record for both profit and growth and 2006 is on track to beat that performance on both scores.