UK arm of cladding firm Permasteelisa cuts losses but stays in red

The UK business of Italian cladding firm Permasteelisa narrowed losses last year but stayed in the red as the firm started to work its way through problem contracts.

The firm, whose jobs include the Olympia scheme for Laing O’Rourke and the delayed ITV Studios redevelopment, said that pre-tax losses fell from £11.2m to £6.8m for the year to March 2024.

It said the losses were “a consequence of the ongoing impact of distressed projects” but added that the fall was down to “some improvement due to resolving losses around legacy projects and the positive performance on some jobs”.

In a note accompanying the accounts, which were signed off just before Christmas, the firm said disruption caused by the covid pandemic had largely disappeared but added: “The industry now contends with residual effects such as supply chain pressures and rising costs. Volumes and margins remain under pressure from intensified competition.”

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Turnover at the firm, which operates mainly in London, was up 10% to £146m.

Permasteelisa, which is owned by Lendlease’s prospective new owner, US private equity firm Atlas Holdings, is headed up at group level by Liam Cummins, Kier’s former building boss.

Last year, Cummins told Building that London was its biggest single market with around a third of its projects in the capital.

In its last set of group results for the year to March 2023, Permasteelisa, which employs close to 3,000 people across the globe, posted a turnover of €790m (£665m) and adjusted earnings of €27m (£23m). It said net equity was €101m (£85m) and it had an order book of €1.1bn (£926m).

Meanwhile, Permasteelisa yesterday said it had bought “key business assets” from US curtain wall and cladding contractor Benson Industries for an undisclosed sum. The near 100-year-old firm tends to work on the West coast and has offices in California and Oregon.