Scotland business

Facilities company City Facilities Management reports profit rise

Lord Willie Haughey Image copyright Company handout

The company founded and run by Glasgow entrepreneur Lord Willie Haughey has reported a rise in revenue and profit, despite "very challenging market conditions".

City Facilities Management expanded overseas, helping boost turnover during 2016 from £463m to £613m.

Pre-tax profit from its facility management and cleaning business rose from £13.5m to £15.7m

However, post-tax profit fell to £10.8m.

The fall was because of deferred and foreign tax payments during 2016.

Earlier this year, the Glasgow-headquartered company rebranded from City Refrigeration, at the same time it opened a European base in Paris.

Last year, it bought a US company in the facilities management sector.

On average through last year, the company employed 11,800 people.

Accounts show the top paid director, who is thought to be Lord Haughey, was paid a salary of £550,000, the same as 2015.

Dividends paid out totalled £7.5m, down from £9m.

Lord Haughey has been a major personal donor to the Labour Party. During 2016, the company accounts state no political donations were made.

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