TIDMLAKE
RNS Number : 1284K
Lakehouse plc
04 July 2017
Lakehouse plc, the asset and support services group
Press commentary
Hackney Council Letter
Lakehouse plc ("Lakehouse" or "the Group"), the asset and
support services group, notes certain recent press articles
featuring the Group.
Grenfell Tower
Lakehouse recognises the enormity of the recent tragedy at
Grenfell Tower, which resulted in the loss of many lives. Lakehouse
has a long and proud history of working with councils and housing
associations in maintaining their housing to a high standard and
ensuring residents have a safe and comfortable environment. In
difficult times, it is important that housing providers and support
services organisations like Lakehouse collaborate in ensuring the
highest standards are maintained.
Lakehouse confirms that its compliance business, Allied
Protection ("Allied"), was engaged by Kensington and Chelsea in
January 2017 to certify the appropriate working of its installed
fire safety systems. Allied is satisfied the system was maintained
in accordance with the requirements and all evidence presented to
date indicates that it performed as it was designed to do. Allied
was however not responsible for the specification of the
system.
At this particular time, we are offering Kensington and Chelsea
and the emergency services teams our full support with information
and resources. Currently we have not been required to provide any
information to an inquiry, nor has there been any inference of any
contractual shortcomings on Allied's part.
The press have queried why Lakehouse did not say anything after
the Grenfell fire. We were contractually compliant and had
previously informed the market, on 17 May 2016 and 24 January 2017
that we were performing works for Kensington and Chelsea.
Hackney Council
A recent press article sought to link a dispute between
Lakehouse and Hackney Homes ("Hackney") with the Grenfell Fire. The
two matters are wholly unrelated.
In section 15.2 or Part 14 of the Group's prospectus of 18 March
2015 ("the Prospectus"), we made the following disclosure:
"The Company is aware of alleged frauds relating to two specific
contracts for a particular client having been carried out in 2013
and 2014 by certain employees of the Company and certain
sub-contractors to the Company, working in collusion with a
consultant engaged by that client to oversee specific works carried
out under those contracts. Having been informed by the Company, the
client commenced an investigation into the alleged frauds. As far
as the Company is aware, the alleged frauds related to the
"over-payment" by the client for works undertaken by certain
sub-contractors, the non-performance of contracted works or the
performance of works to a standard below the requisite contract
requirement by the sub-contractors and the subsequent processing of
invoices representing works not completed and outside the scope of
the relevant contracts. Since becoming aware of these issues, the
Company has co-operated fully with the client's investigations and
those of the police into the alleged fraudulent activities of the
individuals concerned, including the employees of the Company. The
Group continues to perform other contracts for the client and is
working with it to undertake the works not performed under the two
affected contracts and to rectify the works carried out below the
requisite standards. The Company has made a provision in its
accounts for the year ended 30 September 2014 of GBP3,000,000
comprising GBP1,500,000 in respect of monies retained by the client
and/or anticipated to be repaid to the client, GBP1,000,000 in
respect of remedial works to be carried out at the Company's
expense and GBP500,000 in respect of legal and other fees incurred.
The Company has terminated its contract with the relevant
sub-contractors and dismissed the two employees involved in the
alleged frauds. The Directors of the Company, having taken legal
advice, believe that the prospect of any prosecution of the Company
in relation to these matters to be low. Whilst no charges have
currently been brought against any of the individuals involved, the
Company is aware that investigations by both the client and the
police of the actions of these individuals are ongoing and it
intends to continue to co-operate with such investigations and to
support any action taken against such individuals. In light of
these events, the Company instructed its external legal advisers to
conduct a review of documentation in connection with the alleged
frauds and to review the Group's internal compliance controls,
policies and procedures to ensure that these are sufficiently
robust. Having considered the conclusions of this review and
implemented its recommendations, the Company is confident that it
has taken appropriate action in order to mitigate its position in
relation to the alleged fraudulent activities and that its
controls, policies and procedures are robust, fit for purpose and
capable of preventing and/or identifying any future risks."
In light of a letter written by Hackney to Councils across the
country, we confirm that the client referred to in the above
disclosure was Hackney Homes. The matters contained in the above
disclosure have not changed materially since 18 March 2015 and it
is important to point out that at no stage has there been any
suggestion of fraud on Lakehouse's part. Lakehouse continues to
co-operate with the Metropolitan Police in bringing the culprits to
justice and the investigation extends not only to certain former
rogue employees of and sub-contractors to Lakehouse, but also
representatives of Hackney.
There has never been any suggestion of wrongdoing on Lakehouse's
part, nor compromise in the interests of resident safety.
Importantly in this regard, the press reference that Hackney drew
the attention of the police to alleged sub-standard works is
factually incorrect. Further, the Group can confirm that the
GBP540,000 exceptional gain, reported on 27 June 2017 under
"impairment of receivables" in our interim results to 31 March
2017, related to a series of successful adjudications by Lakehouse
against Hackney for works Hackney alleged were defective and were
determined to be fully due and payable. We continue to pursue
Hackney for further sums which we are due contractually and for
which they have refused to make payment to date.
Other matters
We have been made aware that the press intends publishing
further articles regarding legacy matters in Lakehouse, most
notably a fire at the Haberdasher's Aske school. This was disclosed
in section 15.1 of Part 14 of the Prospectus and again, no material
changes have occurred since the disclosure was made.
Moving Forward
Naturally our thoughts are with the families and residents who
have been impacted by the Grenfell fire. Lakehouse is a leading
asset and support services group and operates to the highest
standard of resident safety and client confidence.
We have found the past week highly disappointing, but will not
be distracted from continuing to provide a high level of service to
clients and residents alike and support them during this difficult
and traumatic time.
Enquiries
Lakehouse Financial Public
Relations
Bob Holt, Chairman, 07778 Camarco
798816
Michael McMahon, Chief Operating Ginny Pulbrook
Officer
Jeremy Simpson, Chief Financial Tom Huddart
Officer
Telephone: 01708 758 800 Telephone: 020
3757 4992
Stockdale Securities
Andy Crossley
Antonio Bossi
Telephone: 020 7601 6100
Notes to editors
Lakehouse is an asset and energy support services group that
constructs, improves, maintains and provides services to homes,
schools, public and commercial buildings with a focus on clients in
the UK public sector and regulated markets. Services are delivered
through four divisions: Compliance, Energy Services, Property
Services and Construction.
The Group was founded in 1988 and is headquartered in Romford,
Essex. It currently employs some 2,200 staff from 32 offices across
the UK.
This information is provided by RNS
The company news service from the London Stock Exchange
END
SPCLLFVDDEISIID
(END) Dow Jones Newswires
July 04, 2017 13:37 ET (17:37 GMT)
Sureserve (LSE:SUR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Sureserve (LSE:SUR)
Historical Stock Chart
From Apr 2023 to Apr 2024