Grenfell cladding firm falls into loss after work dries up

The firm which fabricated part of Grenfell Tower’s cladding and windows has fallen into a loss as demand for its goods collapsed after the tragic blaze, figures revealed on Wednesday.

CEP Architectural Facades, which is a “core participant” in the Grenfell Inquiry, reported turnover slumped more than £300,000 to £4 million in the year to December 31, 2017, and pre-tax profits of £344,000 in 2016 turned into a loss of £10,000.

CEP admitted its facades business was “adversely affected by project delays and the aftermath of the Grenfell Tower.”

Despite that, it still paid dividends of £410,000 up to its holding company, Xerxes Equity, although this was invested in other parts of the business rather than paid out to individuals.

CEP says its role in the Grenfell refurbishment was to “cut to shape” the rainscreen panels and windows “using materials, and to a design, specified by the Grenfell Tower design and build team.”

It has issued public statements to the media questioning why combustible insulation material was used rather than fire-resistant mineral fibre.

CEP was made dormant in January as part of a process to consolidate several group businesses into one company.

Like Rydon, the main contractor on the controversial Grenfell Tower refurbishment, CEP and its associated companies have not set aside funds for potential fines or litigation in its financial accounts.

The inquiry is ongoing and there is no suggestion CEP will be found liable.

A spokesman said: “We have fully consolidated all of our operating company assets and liabilities into a single existing group company and have left nothing behind.”