Steelwork group Bourne delivers profit jump

Aaron Morby 9 years ago

A string of railway and Crossrail projects and more selective bidding has delivered strong profit growth at steelwork specialist Bourne Group.

The Poole-based contractor has bounced back after several lean years with pre-tax profits jumping 41% to £1.3m on turnover ahead £6m to £48m.

During its 2014 financial year, Bourne completed projects including the new Reading Station, extension of the National Theatre in London, the new £13m Bristol Parkway multi-storey car park for First Great Western and new offices for BSkyB. It is also working for Crossrail on several station headhouse projects.

Also Bourne has just become the only steelwork business to be awarded a Network Rail principal contractor licence allowing it to carry out rail projects and work trackside on the network.

Chief executive Steve Govier said: “During the second half of 2014, the long awaited recovery in the UK construction sector began to take hold, buoyed by strong growth in the private residential sector but with strong demand experienced in the commercial and infrastructure sectors and a general upturn in the wider UK economy.

He said several competitors has ceased trading over the last six years, reducing capacity in the steelwork industry significantly.

“As demand increased, it quickly outstripped capacity and the company found itself able to be more selective in the choice of  projects undertaken, with a general improvement in trading conditions, especially in the fourth quarter of 2014.”

He added: “All of the market indicators are showing that the construction sector is now in a period of sustained growth. Aside from the potential impact of the looming general election and other global factors, there is every reason to believe that this will continue for the foreseeable future.”

Bourne has already secured 70% of its planned work and had net funds of £10.4m at the October end of its financial year.

The average number of staff employed during the period grew to 176 from 150 as orders picked up. 

During the year former chairman David Sands announced his retirement after 30 years at Bourne. It also opened new offices in Bristol and Ringwood as well as redeveloping its former offices at Ferguson House to residential units.

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