The new directors of JKX, the oil and gas company whose former board was ousted this year, warned of the challenges they face turning round the company as its losses deepened. The company released its annual results on Monday, which showed pre-tax losses had increased from $53.7m in 2014 to
House values in the UK could fall by 10% and up to 18% due to the economic shock that would hit the country if people vote to leave the European Union in the referendum next month, according to the Chancellor of the Exchequer. George Osborne, speaking at the G7 finance
Construction sector reacts to ‘Brexit’ Published: 24 June, 2016 The EU Referendum result has caused uncertainty in the construction industry, with many associations and industry bodies calling on the government to react quickly in order to reassure the financial markets. The UK voted to leave the European Union by a narrow
PhD researcher Rima Alaaeddine, within University of Huddersfield’s School of Art Design and Architecture, has focused her work on how to combat and minimise the ‘energy performance gap’. Using AI’s Machine Learning, her research could benefit the building sector at a time when there is increasing pressure on industries around
Vivalda Group plc, the UK’s leading distributor of architectural cladding, has announced first quarter sales figures showing a continuing rise in sales into a construction industry beset by uncertainty and recession. The figures for the first three months of 2018 show sales increasing by 20% compared to the same period
Forterra, the brick manufacturer, is planning to submit an application that will help significantly expand its brick production plant in Desford, Leicestershire. The company admitted that the new facility will more than double its production to 180 million bricks a year, at a cost of £90 to £95 million. “We
Kier, together with the Construction Industry Training Board (CITB), will be launching a new education initiative in Wales, which will create effective links between local schools and the Kier supply chain. The ultimate goal of this initiative is to inspire the next generation of talent to consider a career within
Rhodar, one of the UK’s leading asbestos removal companies, headquartered in Leeds, has been recognised for its innovative, unique asbestos removal project for Great Western Railways (GWR) in Penzance at the 2018 UK Rail Industry Awards (UKRIA). Rhodar won the award for ‘Outstanding Projects (under £3million)’ at the awards ceremony
The new directors of JKX, the oil and gas company whose former board was ousted this year, warned of the challenges they face turning round the company as its losses deepened. The company released its annual results on Monday, which showed pre-tax losses had increased from $53.7m in 2014 to $82.7m last year as it continued to adjust to low oil prices and volatility in Russia and Ukraine, where it operates. More On this topic IN Oil & Gas Sales dropped from $146.2m in 2014 to $88.5m last year and capital spending fell from $42.3m in 2014 to just $8.7m. Tom Reed, the new chief executive, told shareholders he had identified significant scope to improve output and reduce costs since taking over two months ago. “There are many challenges facing the company, and the new board is committed to a new and transparent approach and to actively engage all shareholders and other stakeholders of the company in order to turn it around,” he said. But at the same time, the company warned: “There remains a number of material uncertainties that may cast significant doubt about the group’s and company’s ability to continue as a going concern.” Russell Hoare, the chief financial officer, listed the main problems as restrictions on doing business in Ukraine and low gas tariffs in Russia. JKX’s share price fell 9 per cent to 23.9p on Monday. The company has struggled in recent years as the falling oil price has been exacerbated by problems in Russia and Ukraine. Its problems came to a head earlier this year when Proxima Capital, run by Russian businessman Vladimir Tatarchuk, led a successful attempt to remove the former board. Paul Ostling, the new chairman, said on Monday that the coup was a “rare example of genuinely successful shareholder activism in the long history of the London Stock Exchange.” As well as cutting costs, the new management has said one of its top priorities is to settle a long-running legal case against the Ukrainian government over what it says are $270m in overpaid taxes. Mr Reed told the Financial Times last month the case had distracted JKX from drilling for oil and gas, and said he wanted to end it quickly, even if it meant settling for a lower figure. Mr Ostling said on Monday: “We have met with representatives of the Ukrainian Government in recent weeks to attempt to find a solution to all our production tax and licensing issues in-country and we are confident that an acceptable solution can be found.” Copyright The Financial Times Limited 2016. You may share using our article tools. Please don’t cut articles from FT.com and redistribute by email or post to the web. Source link
House values in the UK could fall by 10% and up to 18% due to the economic shock that would hit the country if people vote to leave the European Union in the referendum next month, according to the Chancellor of the Exchequer. George Osborne, speaking at the G7 finance ministers’ meeting in Japan, revealed that the forthcoming Treasury analysis on the short term economic consequences of a vote to leave will demonstrate a wide range of negative impacts on families and businesses, including the housing market. It concludes that by 2018, home owners will be hit as growth in Britain’s housing market will be reduced by at least 10% and up to 18% compared to what is expected if the UK remains in the EU, as heightened uncertainty generated by Brexit hits financial markets, consumer confidence and home values. Independent authorities, including the International Monetary Fund, have warned that if Britain votes to leave the EU then mortgage interest rates would also rise because of financial market instability, meaning fewer people being able to get a mortgage and mortgage costs rising for all. The Treasury conclusion follows warnings from Virgin Money’s Chief Executive, the CEBR, S&P, Fitch and Deutsche Bank about the potential negative impact on Britain’s housing market from a vote to leave the EU. The Chancellor said finance ministers from other G7 countries attending the summit in Sendai confirmed that in their assessment, leaving the EU could cause significant financial market turbulence, affecting families and businesses. The Chancellor also challenged the idea that negotiating a new relationship with the EU would be easy if the UK votes to leave, warning that instead it would be a long, costly and messy divorce. In the coming days the Treasury is going to publish analysis of what the immediate impact will be. Osborne also said that mortgages will get more expensive and mortgage rates will go up. ‘If we leave the European Union there will be an immediate economic shock that will hit financial markets. People will not know what the future looks like. And in the long term the country and the people in the country are going to be poorer,’ Osborne said. ‘That affects the value of people’s homes and the Treasury analysis shows that there would be a hit to the value of people’s homes by at least 10% and up to 18%. And at the same time first time buyers are hit because mortgage rates go up, and mortgages become more difficult to get. So it’s a lose-lose situation,’ he pointed out. ‘We all want affordable homes, and the way you get affordable homes is by building more houses. You don’t get affordable homes by wrecking the British economy. And of course if we left the EU, mortgage rates would go up, it would become more difficult to get mortgages so they’d be hit as well,’ he added. Critics of the new Treasury analysis are likely to point out that the fall in prices is only compared with where they would have been if there was no vote for Brexit. The independent Office for Budget Responsibility predicts a rise of 9.4% over the next two years and a further 5% over the following year. However, most home owners have seen the price of their home rise by 9% in the last 12 months so the government forecast actually suggests that homes would be worth between 0.6% and 8.6% less in cash terms than they are now. However, the run up to the vote on 23 June is having an effect on the country’s property markets. Estate agents are reporting a slowdown in sales and a wait and see attitude. Lawyers are reporting that investors in commercial property are adding Brexit clauses to contracts allowing them to pull out of purchases if the outcome is not favourable. Law firm Nabarro said buyers were putting down deposits that would be refundable if the UK voted to leave. ‘We have seen a marked increase in the number of contracts which include clauses to protect the position of buyers investing in UK real estate ahead of the European Union referendum. Brexit is a leap into the unknown. Brexit clauses are a pragmatic, legal response to that uncertainty,’ said senior partner Ciaran Carvalho. Research from global real estate consultants CBRE shows that 73% of investors in commercial real estate feel the UK’s attractiveness as an investment destination would be damaged by an exit from the EU. Only 7% of investors feel Brexit would improve the UK’s attractiveness. ‘There was just over £14 billion of investment into UK commercial property in the first three months of 2016, some 21% down on the same period in 2015. Early indications are that retail investment is down by around 30% on a year ago, possibly because investors are concerned about the consumer spending outlook in a Leave world,’ said Miles Gibson, head of UK research at CBRE. ‘While there are a wide range of factors affecting investment levels, including global economic conditions, these figures show that investors are unsettled by the uncertainty generated by the Brexit debate,’ he added. A few days ago the developer behind new luxury flats in London said it would give buyers the chance to pull out of purchases if they did not like the outcome of the vote. BOOKMARK THIS PAGE (What is this?) Source link
Construction sector reacts to ‘Brexit’ Published: 24 June, 2016 The EU Referendum result has caused uncertainty in the construction industry, with many associations and industry bodies calling on the government to react quickly in order to reassure the financial markets. The UK voted to leave the European Union by a narrow margin of 51.9% to 48.1%. Financial markets reacted badly to the announcement, which was made in the early hours of 24 June, 2016. The Pound fell to levels not seen since 1985, while the FTSE 100 index fell 8%, though recovered to a fall of 2.5% later in the day. The housebuilding sector also suffered sharp falls in share prices. The construction industry is now calling on the government to react quickly in order to reassure the markets and establish a framework going forward. The Federation of Master Builders (FMB) warned that government must ensure whatever new immigration system is now put into place provides the construction sector with enough skilled workers to build the homes and infrastructure projects we need. Brian Berry, FMB chief executive, said: “The UK construction industry has been heavily reliant on migrant workers from Europe for decades now – at present, 12% of the British construction workers are of non-UK origin. The majority of these workers are from EU countries such as Poland, Romania and Lithuania and they have helped the construction industry bounce back from the economic downturn when 400,000 skilled workers left our industry, most of which did not return. It is now the government’s responsibility to ensure that the free-flowing tap of migrant workers from Europe is not turned off. If Ministers want to meet their house building and infrastructure objectives, they have to ensure that the new system of immigration is responsive to the needs of industry.” He continued that the UK must also invest in ‘home-grown’ talent by boosting apprenticeship training and providing sufficient funding. He said: “The next few years will bring unprecedented challenges to the construction and house building sector, and it’s only through close collaboration between the government and industry that we’ll be able to overcome them.” The British Property Federation (BPF) said stabilising the pound has to be the government’s first priority. Melanie Leech, BPF chief executive, said: “The priority for the government and the Bank of England must now be to stabilise the position and maintain confidence in the UK. The negotiation process is going to be long and complicated, and there will be many unknowns ahead. Our priority is that the government maintains focus on existing national priorities such as housing and that it makes decisions on major infrastructure projects, such as airport capacity and maintaining momentum around HS2, swiftly.” John Newcomb, managing director of the Builders’ Merchants Federation (BMF), commented: “The BMF fully respects the democratic decision that has been made by the British people and in which our members, their employees and customers have participated. Our priority now is to work together in the BMF and with other trade bodies to make sure the construction industry is properly consulted and engaged in discussions with the government about the implications of the vote to leave the EU. There are many important issues to raise on behalf of BMF members about future changes that impact on jobs and the future of projects and funding that are linked to the government and in some cases to the EU.” Mr Newcomb said the BMF will now participate in discussions with other construction trade associations such as the Confederation of British Industry (CBI), Construction Products Association and FMB about the impact of the decision, before issuing a more detailed statement. The UK Green Building Council (UK-GBC) stressed the importance of the UK continuing to address issues such as climate change and sustainability. Julie Hirigoyen, CEO of UK-GBC, said: “Brexit is already sending shockwaves through the construction and property sector, the scale of which won’t be clear for some time. It will be a tough trading climate, that will impact companies both large and small. “Both economic and political uncertainty will have some people asking whether the green agenda needs to be deprioritised while business goes into firefighting mode. This must and need not happen. Arguably now more than ever we need to minimise future risk, reduce costs, add value for clients, generate new commercial opportunities and ensure we have the best people working as productively as possible. A sustainable built environment is fundamental to these objectives. “UK-GBC will redouble its support of the industry, make the business case for sustainability, and explore more deeply the commercial drivers for sustainability. We will encourage an unprecedented collaboration between progressive businesses, green groups and other trade bodies. We will take the argument to Government that a low carbon, sustainable built environment is good for UK Plc, and that this requires a clear and consistent policy landscape – in or out of the EU.” Source link
PhD researcher Rima Alaaeddine, within University of Huddersfield’s School of Art Design and Architecture, has focused her work on how to combat and minimise the ‘energy performance gap’. Using AI’s Machine Learning, her research could benefit the building sector at a time when there is increasing pressure on industries around the world to conserve their energy consumption. ‘Energy performance gap’ is used when a building consumes more energy than it was initially predicted during design phase. The gap is attributed to a set of variables such as environmental conditions, building characteristics and occupancy. Predicting how much energy a building’s occupants will consume, including lighting, hot water, electricity, appliances and the way they interact with the building for example, opening windows and controlling their heating, ventilation and air conditioning systems, is a complex task. For this reason, Rima’s research could play an important part in helping the construction industry meet strict energy efficiency targets, recently set by the UK Government as part of a new energy strategy. With the energy consumption of buildings accounting for 30% of the entire global energy use, improving the energy efficiency of buildings is one of the key strategic objectives. More accurate energy predictions can facilitate building energy optimisation and guide decisions regarding the building energy performance. In her research, she uses AI entitled Machine Learning, which are capable of handling complex and non-linear problems and can offer more accurate predictions on occupants’ behaviour. Rima’s project is already receiving national recognition and she has been shortlisted to present her research in Parliament, as part of the annual STEM for BRITAIN competition. Her entry is called ‘Minimising the energy performance gap by application of an integrative machine learning methodology for occupants’ behaviour prediction’. “The event provided me with an opportunity to communicate my research as widely as possible, to inform and enthuse non-scientific audiences about my research in the building energy performance realm, aiming to unveil the benefits it brings,” Rima said.
Vivalda Group plc, the UK’s leading distributor of architectural cladding, has announced first quarter sales figures showing a continuing rise in sales into a construction industry beset by uncertainty and recession. The figures for the first three months of 2018 show sales increasing by 20% compared to the same period in 2017. Ben Jayes, managing director of Vivalda Group plc, said; “Our continuing growth shows how the market for our off-site fabrication facility, which enables our customers to benefit from greater efficiencies on site, is continuing to grow. Our expansion plans are on course and the heavy investment needed to roll out the offer nationwide is clearly providing the capacity required to meet demand”. Vivalda Group has already reported how its new Ireland office, which opened last August, is on course to achieve annual sales of €1m, adding to the good news. “Here is evidence that the market will always respond favourably to a supplier whose service is backed by a culture of expertise and investment”, said Jayes. The architectural cladding market has had its share of uncertainty over the past year, but Jayes adds: “The sector is looking for leadership and with Vivalda Group’s long history of loyalty to world-class suppliers, our customers know we can be relied upon to provide a warranted, certified product which all concerned know will be fit for purpose”.
Forterra, the brick manufacturer, is planning to submit an application that will help significantly expand its brick production plant in Desford, Leicestershire. The company admitted that the new facility will more than double its production to 180 million bricks a year, at a cost of £90 to £95 million. “We have chosen redevelopment of the Desford site as the favoured option of those considered as it enables us to replace the existing plant with a larger modern facility, providing both additional capacity and the benefit of a lower production cost. This will give us the flexibility to continue to serve our customers and meet their requirements as the market grows,” said Stephen Harrison, chief executive at Forterra. Until the new facility will be built, the existing plant will remain in operation. Subject to planning consent being received, it is anticipated that the new plant will be commissioned in late 2021 and that the capital expenditure will be spent over the period 2019 to 2022. The enabling and preparation costs of £1.5 million have already been committed and included in the capital budget for the current year. “The high level of capacity utilisation in the UK brick industry, together with the attractive long term fundamentals on house building supported by government policies, provides a sound basis for this major investment,” said Stephen Harrison. “The project is a key part of our strategy to grow our core business and pursue manufacturing excellence, driven by our strong customer relationships as well as our people. It will enable us to continue delivering sustainable shareholder value,” he concluded.
Kier, together with the Construction Industry Training Board (CITB), will be launching a new education initiative in Wales, which will create effective links between local schools and the Kier supply chain. The ultimate goal of this initiative is to inspire the next generation of talent to consider a career within the built environment. The Educational Engagement Programme will be launched at a special event on the 4th of June, taking place at Technium 2, The University of Wales Trinity Saint David. Schools, alternative curriculum providers and local employers from the industry will have the opportunity to come together and create links and external partnerships in order to better promote the diverse range of future career opportunities for young people. Moreover, those attending will learn about the purpose of the programme and how it can add value to their priorities as a school or business. Speakers at the event include Emma Banfield and Paul Evans from the Welsh Government initiative Inspiring Skills Wales, who will present on their partnership with Kier and how they can add value to the programme through the provision of innovative toolkits and construction-based competitions available to schools. “This programme is absolutely pivotal for the construction industry to deliver the extensive pipeline of work in Wales. This initiative will offer a truly unique approach with the development of a construction education tool that will help breakdown perceptions and showcase the wealth of job opportunities available within the built environment. Our industry has so much to offer and I am looking forward to the roll-out and reception to this inspiring initiative,” said Jason Taylor, Kier Construction Western and Wales, operations director. Chartered Institute of Building (CIOB) and Careers Wales are the partners of the programme, both of them attending the launch event. The three-year initiative was funded by the CITBH and managed by Kier, as it aims to transform the perception of careers in the built environment, bridging the future skills gap.
Rhodar, one of the UK’s leading asbestos removal companies, headquartered in Leeds, has been recognised for its innovative, unique asbestos removal project for Great Western Railways (GWR) in Penzance at the 2018 UK Rail Industry Awards (UKRIA). Rhodar won the award for ‘Outstanding Projects (under £3million)’ at the awards ceremony held at Battersea Evolution, London, in March. The event, now in its fifth year, brought together leaders and decision-makers from across the rail industry. The winning project was a collaboration between Rhodar, its client Spencer Group and Great Western Railways (GWR), which had a requirement for the safe removal of asbestos containing materials from one of its vast 192m HST (High Speed Train) maintenance facilities based in Penzance. Rhodar developed a specialist solution that allowed the safe removal of the asbestos, without impacting on the critical train maintenance schedule. Utilising a unique, multi-level scaffold enclosure system, which was erected inside the maintenance facility and operated on a bespoke set of purpose-built tracks, Rhodar worked systematically through the depot (from one end to the other in 11 planned sections) by locking the scaffold system down in each section, sealing the specialist asbestos enclosure walls and floor, and attaching the moveable airlock and bag-locks. Rhodar faced a number of challenges during the project, including adverse weather conditions on the south west coast and an increase in planned train movements through the HST maintenance depot. Both had to be overcome in order to ensure the strict overall programme and timescales were met, enabling follow-on facility refurbishment works to be carried out on schedule. Jason Davy, Managing Director, Rhodar commented: “We are extremely proud to win this award. It goes without saying that it is down to the excellent team of professionals and their continuous improvement and operational competency. This project was unique but was ultimately successful due to the shared vision that resulted in the creation of a best-practice partnering model, delivering significant benefits to all project stakeholders.” The UKRIA event had 29 categories, and in the Outstanding Projects (under £3million) category, Rhodar was one of seven nationally recognised organisations to be shortlisted as a finalist alongside major rail and construction companies. The award recognises the hard work and achievement of Rhodar colleagues and partners to support an efficient and robust rail network, which continues to be one of the safest in Europe. This win comes hot on the heels of another major accolade for Rhodar, when the Penzance project was also selected as a finalist in the prestigious Construction News Specialists Awards 2018 in the ‘Project of the Year (up to £1m)’ Category at the beginning of March.
