Steel fabricator Severfield Rowen is to lose £9.9M on its contract for the Leadenhall Building, more commonly known as the Cheesegrater, the group announced this week.
The sub-contractor is working for Laing O’Rourke on the 52 storey high development in the city of London.
“Despite the disappointment of the financial impact on the Group from the findings of this review, I am encourages by many of the conclusions drawn from it and by the actions we will be taking to improve our business, “ said Severfield Rowen’s executive chairman John Dodds.
“This is a good business which remains well supported by its customers. It is important to note that, following our rigorous review process the vast majority of the Group’s contracts are progressing satisfactorily, with both Atlas Ward and Fisher Engineering performing particularly well.”
The firm’s former chief executive officer Tom Haughey quit last month as the board launched a review of its contracts following costs overrunning on the Cheesegrater.
Severfield Rowen also announced it expects to lose £2.9M on a further three, unnamed contracts and a write down of £7.3M from five more and is now seeking to raise up to £50M in equity.