Keltbray latest to make financial provisions

Industry news portal Construction Enquirer is reporting today that Keltbray has made a provision of £6 million in its latest accounts for a “civil regulatory matter”.

It is understood the figure relates to potential fines following a three-year investigation by the Competition & Markets Authority (CMA).

The Enquirer understands the level of possible penalties following the investigation into six companies were communicated to firms earlier this year.

The investigation opened in March 2019 into possible breaches of the Competition Act in relation to the supply of construction services.

Keltbray said it is “addressing a civil regulatory matter relating to historical issues which arose under a previous management team.”

It added: “The timing and outcome of this matter is uncertain however the range of potential liability is between £3.9 and £16 million.

“Having received advice a best estimate provision of £6m in relation to potential liability has been considered by the directors to be appropriate.”

Keltbray has also spent £500,000 in legal fees on the case.

Earlier this year Careys set aside £9 million for “a regulatory matter relating to historical breaches due to the behaviour of a former management team”.

The CMA says the next official update on the case will be next month.

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