Rydon’s financial struggles continue as fire safety expenses mount

As reported by Construction News, Rydon, the main contractor involved in the refurbishment of Grenfell Tower, has disclosed spending in excess of £19 million on fire safety remediation.

This expenditure is part of an ongoing effort to address the fire safety issues that have emerged post-refurbishment.

The company’s financial records as of 30 September 2023 show that these efforts encompass remediation across 500 apartment properties.

The financial toll of these remediations is reflected in Rydon’s escalating losses, which have nearly doubled from £5.9 million to £9.1 million over the last year.

“To date, we have spent over £19m on remedial safety works,” the firm’s accounts noted.

Furthermore, Rydon is preparing for additional expenditures in this area, engaging with supply chain partners, designers, consultants, and insurers to meet the evolving fire safety compliance standards.

Continued financial obligations and market challenges

In 2022, Rydon allocated £26.7 million towards a settlement concerning those affected by the Grenfell Tower fire, a settlement that reportedly amounted to £150 million.

The company is also in “ongoing discussions” with other parties not involved in the initial settlement, including emergency services that responded to the fire.

Although specific figures were not disclosed, Rydon reported setting aside a total of £13.4 million for the year to cover various provisions.

Rydon’s financial performance has been further impacted by various external pressures including high inflation, government changes, the ongoing war in Ukraine, and a general decline in consumer confidence.

These factors have contributed to a decrease in turnover, with the latest figures showing a reduction from £52 million to £47.5 million, and a diminished cash position of £1.1 million, down from £3.7 million the previous year.