Erith posts pre-tax profit as it repays bid-rigging fine early

Erith has paid its £17.6m bid-rigging fine two and a half years earlier than agreed, it has announced in its latest accounts.

The London-based contractor, which is the holding company for Erith Construction, posted turnover of £255m for the 12 months to 30 September 2024.

This was up 12 per cent from the prior year’s total of £227m.

Pre-tax profit increased by 37 per cent over the same period from £6.2m to £8.4m.

Chairman Steven Darsey said: “These results reflect our strong management, especially in respect of the growing business, while maintaining and improving margin.

“Within the year we have also finalised the historical Competition and Markets Authority (CMA) topic, having concluded the payment in full, two and a half years earlier than agreed.”

Erith was one of 10 demolition contractors that were hit with fines totalling £59.3m for their involvement in bid-rigging in 2023.

The CMA had ruled that the firms, which included Keltbray, McGee and Erith, were all colluding on prices through “illegal cartel agreements”.

It found the firms had colluded on submitting bids for work, with 19 projects worth more than a combined £150m affected. Erith was fined £17.6m.

Last year, Erith retained its top spot in the CN Specialists Index as the UK’s largest demolition contractor for the second year running.

The firm continued its growth and again saw a 12 per cent hike in turnover to its 2023 accounts.

“The directors are satisfied that the results for the year are in line with forecasted results and view the future with cautious optimism,” its accounts said.

“Turnover was increased due to a combination of factors, including a fluctuating economic climate, the type and combination of works undertaken.”

In April, Erith Contractors was named by Peel Ports Group as one of 18 contractors to work on a long-term construction framework worth up to £750m, covering major works across its UK and Irish port sites.