A steep fall in the profit of MCS Group was partly caused by a jump in insurance costs, the company has said.
The Warwick-based contractor saw its pre-tax profit plunge from £4.8m in 2018 to £52,000 in 2019. In newly published accounts for the year ending 31 December 2019, the company said the fall was partially due to a 77 per cent rise in its insurance premiums. “The construction insurance market has experienced an unprecedented rise in premium as a reaction to Grenfell,” it said.
MCS, which focuses on the industrial and logistics markets, also incurred some loss-making contracts and had margins cut on other jobs due to problems with utility installations and ground engineering during the wet August of 2019.