The Competition and Markets Authority (CMA) has today confirmed the findings of its investigation into the historical activities of a number of undertakings in the UK demolition industry. The ten undertakings included Keltbray Limited, a wound down subsidiary of the Keltbray Group.
Keltbray strongly condemns anti-competitive practices and fully cooperated with the regulator’s enquiries throughout the investigation and agreed to settle. For the avoidance of doubt, this investigation related to civil infringements of the UK competition regime. Significantly, Keltbray was not one of the firms involved in compensation arrangements in relation to those contracts affected by the infringing activity.
As part of today’s announcement, the CMA has indicated the level of financial penalty which it intends to impose on each undertaking as a result of the competition law breaches, based on its assessment of a number of factors including historic Group turnover. As a result, the CMA intends to impose a financial penalty of £16 million on Keltbray.
As today’s release by the CMA has highlighted, Keltbray did not instigate any infringement activity or benefit financially from the infringements, and therefore believes the intended penalty is excessive when compared to Keltbray’s level of involvement, particularly when compared to the malpractices of other organisations who did benefit financially from their activities. Keltbray is therefore disappointed with the level of penalty which the CMA intends to impose on it and will be appealing that decision. The penalty was referenced in the Group’s 2021 financial statements and the directors do not currently believe it necessary to revisit the amount provided.
Commenting on today’s announcement, Darren James, Chief Executive Officer said:
“We strongly condemn anti-competitive practices and treat all matters that reflect on our compliance with statutory obligations with the utmost gravity. Keltbray has cooperated fully with the CMA throughout this inquiry relating to activities between 2009 and 2017.
“Since that time, much has changed. Keltbray today is a very different organisation with the necessary controls and independent oversight in place, following the early adoption of the Wates Corporate Governance Principles for large, private companies, to ensure these isolated events could never reoccur.
“The reported CMA penalty is based on Keltbray’s total group turnover, rather than the actual level of culpability relevant to the wound down subsidiary. Keltbray is a large, highly diversified business, with demolition representing a small proportion of total revenues. Keltbray will be appealing today’s penalty decision.”
Philip Pashley, Group Proposals and Communications Director
Tel: 020 7643 1000
Email: [email protected]
Notes for Editors
Keltbray is a leading UK specialist construction engineering and infrastructure services business, offering a uniquely integrated delivery capability spanning key phases of the client value chain – design management, civil engineering, geotechnical, construction waste management, demolition and decommissioning, piling and reinforced concrete structures, remediation, rail infrastructure, power distribution, transmission and substations, and renewable energy services.
The company was founded in 1976 and is privately owned, directly employs over 2,000 people, and is a key delivery partner to prestigious public and private sector customers, contributing to the development and maintenance of Britain’s rapidly changing economic and social infrastructure.
Keltbray provides certainty of delivery to meet the exacting needs of diverse and complex projects in highly regulated, safety-critical markets, like energy and renewables. Its professionally accredited teams take pride in delivering safely and sustainably, on time, to budget, and with care for the environment and our communities.