Lindum warning after profits drop 25pc

• Increase image
• View all images

Lindum Group's latest set of full year results show a 25 per cent drop in pre-tax profit from £5.9 million to £4.4 million and bosses warned of more challenging times ahead.

The profit for the year ended 30 November 2007 is the Lincoln-based company's second best ever as bosses said an "excellent first half performance had been followed by a solid second half period".

But in a statement in the full year accounts, chairman David Chambers said: "We expect the Lincolnshire housing market to remain 'sluggish' for a long time.

"As far as the commercial property market is concerned, with falling yields and high interest rates, 'Cash is King' and investors will be looking for bargains."

Turnover at Lindum was up by £8 million over the year to £87.4 million with bosses saying each of the company's operating sectors – construction, support and land related – turned a profit in 2007.

Bosses warned they expected a fine in due course for three allegations of cover pricing from the Office of Fair Trading, dating back to 2000.

Mr Chambers said: "We believe that we will be fined for this offence, which was unintentional, but we cannot comment at present on the amount of the fine."

Lindum's number of employees went up from 478 to 490, but the wage bill was reduced £89,687 to £13,640,133.

The highest paid director received £280,000 compared with £310,000 the previous year.