Slimmed down Rydon returns to profit

Chief executive Bob Bond

Rydon Group Holdings turned over £146.8m (2020: £190.5m) and made a pre-tax profit of £3.7m for the year ended 30th September 2021. In fiscal 2020 it lost £2.5m before tax.

While accounts for Rydon Group Ltd show a pre-tax loss of £2.7m (2020: £700,000 loss) on turnover of £121.5m (2020: £166.7m), parent company Rydon Group Holdings came out ahead.

Rydon Group comprises Rydon Construction and Rydon Maintenance. Rydon Group Holdings also includes the house-building business, Rydon Homes.

Rydon Construction turned over £46.7m (2020: £101.1m) and made a pre-tax loss of £2.2m (2020: £100k profit).

Rydon Maintenance turned over £46.6m (2020: £49.5m) and made a pre-tax profit of £900,000 (2020: £200k). Rydon Homes turned over £19.2m (2020: £29.9m) and made a profit before tax of £3.7m (2020: £700k).

In February 2021 Rydon Construction sold its regional contracting businesses Rydon LSE and Rydon SW to Paul Nicholls, a former director of Wates’ house-building division. The discontinued operations turned over £23m and made an operating profit of £1.1m.

Rydon is no longer operating as a design & build contractor other than in relation to run-off or legacy projects.

Rydon Group Ltd paid parent company Rydon Holdings a £50m dividend during the year. Rydon Group Holdings, owned by Robert Bond, paid out no dividends.

The accounts once again include no provision related to Rydon’s exposure to action relating to its role in the 2017 Grenfell Tower fire. Rydon was main contractor for the cut-price refurbishment and oversaw the installation of the lethal cladding.

In the annual report, Rober Bond writes: “In relation to the Grenfell Tower tragedy, our assessment remains as stated in our previous annual reports. We welcome the rigorous public inquiry as other ongoing investigations. Whilst the report from phase 1 has now been published there is still significant ongoing investigation in phase 2, which started in January 2020. Phase 2 has included significant evidence given  by a number of multinational manufacturers of building products used on Grenfell Tower as well as evidence given by product certification bodies. While the final outcome of the inquiry is still some time away, it seems clear from the Hackitt report (the Independent Review of Building Regulations and Fire Safety) and through evidence shared during phase 2 that there needs to be  wider review of building regulations, product testing and certification. Rydon has review the specific work carried out by Rydon Maintenance Limited and given the above and the limited nature of the work commissioned, the approvals received in relation to it and the interrelationship with work undertaken by  other parties, no provision has been made in the accounts for any matters arising from these tragic events.”

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