Northern Bear advised at the interims that Admin expenses had risen to £4.1m, but said that was “due primarily to non-payroll costs”. However, in the Prelims in July, “the main factor impacting administrative expenses was remuneration across our trading companies. All of our subsidiary Managing Directors are paid via a combination of salary and bonus payments”.
It was explained to me that an earlier option scheme had failed as “Builders” preferred hard cash, and had found an option scheme rather difficult to grasp. I did some digging in 2018 and was amazed at the level of salary for some of the subsidiaries.
In previous years, the subsidiary accounts have been released to Companies House in August. However, this year, they have only been released today ? Cynically just before Christmas. So, what do they show ? Reducing in size:
Springs Roofing ( MD Keith Muldoon). Revenue up 3% to £12.4m, gross profit up £216,000 and pretax up £102,000 to £898,000. Directors Fees £378,000, up £126,179. So, gross profit rises £216,000 and directors take 58% of the increase. The highest paid Director takes £149,000. This must be the MD Keith Muldoon.
Northern Bear Building Services ( MD Neil Jukes). Revenue £8.57m, down 11%. However, gross profit rises by £70,000 and pretax profit by £29,000 to £273,000. Directors remuneration rises 66% to £111,378. Gross profit rises by £70,000 and Directors snaffle an extra £44,000, or 61% of the rise. There is no disclosure of the Highest paid Director.
Wensley Roofing (Joint MDs, Keith Soulsby and Steven Luke) A good year with revenue rising 28% to £11.3m. Gross profit rose 53% to £2.11m and pretax rose 83% to £915,000. And this is recognised in a 68% increase in total Board cost to £370,000. The highest paid Director ( presumably Steven Luke, as Keith Soulsby must be paid at plc level ?) gets £125,000.
Jennings Roofing ( MD Martin Briggs). Revenue rises 10% to £7.9m, gross profit however falls 6% to £1.85m, and pretax falls £102,000 to £683,000. Remuneration falls to £250,000 with the highest paid Director still getting £114,000 ( a fall from £157,000).
MGM Ltd ( MD Neil Jukes) Revenue falls 4% to £6.6m, gross profit is flat, and pretax rises 33% to £267,000. Directors remuneration falls to just £33,000. I wonder whether Jukes is paid primarily through Building Services ( above) ?
H Peel (Joint MD Andrew Pollock,…
