Squibb Group claims that the 拢2m fine imposed on it by the Competition & Markets Authority for its role in demolition industry cover pricing is disproportionate.
The company said: 鈥淭he focus of the appeal will, for the most part, concentrate on the background to and determination of the fine. In particular, the fact that the fine is disproportionate when seen in the context of the wider investigation and the other infringements discovered as part of the CMA investigation.鈥�
Squibb made a pre-tax profit of 拢274,000 last year on turnover of 拢33m.
Squibb has become the second of the 100 colluding demolition contractors to go public on its appeal.
Keltbray said on the day of the original CMA announcement on 23rd March that it would be appealing its 拢16m fine, arguing that it was based on group turnover, rather than the turnover of its demolition subsidiary. Keltbray had been expecting, and made provision in its 2021 accounts for, a 拢6m fine.
Unlike Keltbray, Squibb made no provision for any fine in its accounts last year.
Squibb鈥檚 decision to appeal is no surprise. It hinted as much in its initial statement last week, when it said: 聽鈥淚t is disappointing that after four years of investigation, which included reviewing over 10,000 company tenders and extensive representations by the company, where we fully cooperated with the CMA (including a root and branch review of our historical compliance practices) that it has been determined that Squibb Group Limited has committed two acts of simple cover pricing. In relation to the allegations of cover pricing it is also our understanding that the clients were not disadvantaged, and these two instances are considered to be at the low end of the scale of seriousness in terms of overall economic effect. Furthermore, we believe that the proposed fine (which is significantly influenced by a company鈥檚 turnover) is disproportionate when seen in the context of the wider investigation and the other infringements discovered as part of the CMA investigation.鈥�
Got a story? Email news@theconstructionindex.co.uk
