Project delays plunge Byrne Group into £8.2m loss

Aaron Morby 5 years ago
Share

A year of project delays and restructuring at Byrne Group saw the concrete to fit-out specialist run up £8.2m of losses last year.

Michael Byrne predicts three major London contracts will put concrete business back on track this year
Michael Byrne predicts three major London contracts will put concrete business back on track this year

But Byrne Group predicted it would bounce back into the black this year on the strength of major orders in London.

Reporting on results for the year ended June 2018, chief executive Michael Byrne said the group had endured a frustrating year with the start of several projects significantly delayed.

This saw revenue slump to £139m in the 13-month period compared with £322m in the previous year.

He said: “The group has taken positive action to reduce its cost base in the face of project uncertainty and the fall in turnover, but it has not been possible to fully mitigate the reduced level of activity.

“Looking forward the group is poised to recover sales volumes and to operate profitably as it has a secured order book of around £350m at year end, of which £200m is expected to be delivered in the financial year to June 2019.”

During the year Byrne incurred £2m of restructuring costs as staffing levels were cut from around 762 to 432, mainly from a reduction in the direct labour force.

The legacy Chorus fit-out specialist contractor was finally closed with no further loss incurred.

The group’s concrete frame contractor, Byrne Bros, saw revenue half to £72m suffering a trading loss of £2.9m.

Major London contracts for Lendlease at Google’s new headquarters project in King’s Cross and for Multiplex on two landmark residential tower projects in Vauxhall are hoped to turn around the business’s fortunes this year.

The Multiplex projects are Aykon London One, which consists of a 50 and 24 storey towers and One Nine Elms, a 56 and 42 storey residential scheme.

The group’s other business, general builder and refurbishment contractor Ellmer, saw revenue slip back to £66m from £80m, while it delivered a trading profit of £800,000.

Byrne Group is owned by South African construction group WHBO, which upped its stake in the business from 40% to 80% in June 2018, after buying out shares of co-founder Johnny Byrne.

The move by the £2bn construction giant strengthened Byrne’s financial backing to fund future growth.

Latest news

McLaren gets green light for 45-storey Leeds tower

Landmark Wellington Square scheme will see 464 flats built with 360,000 sq ft of offices
2 days ago

Heavy rain causes 1.9% construction output fall

Hopes remain undampened of a resi-led recovery this summer
2 days ago

Taziker restruture to return to profitability after £1.2m loss

Founders bought the business back from private equity after last year's loss
2 days ago

£220m London wharf homes scheme approved

285 homes to be built beside protected Albert and Swedish Wharves in Wandsworth
2 days ago

Major project veteran named civils director for Sizewell C

David Speight previously worked on Hinkley, Heathrow and HS2 client teams
2 days ago

Morgan Sindall lands £19m Milton Keynes hospital job

Crane lifts to be carefully co-ordinated to ensure air ambulance remains active
3 days ago

Clancy bolsters civils leadership team

Daniel Tonkin and Simon Hyams join as operation directors of water and infrastructure
3 days ago

Balfour names new project boss for HS2’s super-hub station

Steve O’Sullivan replaces Nigel Russell who was promoted to CEO of Balfour's HS2 ops
3 days ago

Buckingham Group supply chain hit doubles to £256m

Total owed to unsecured creditors soars as surety providers finalise claims
3 days ago

Builders demand an end to police plant bans

Call to suspend all embargoes on moving mobile cranes and large site kit
3 days ago

Green light for £65m Blackpool multiversity campus

Education campus of 350,000 sq ft will be delivered in phases
3 days ago

Vinci signs £138m Sheffield steel forge expansion deal

Sheffield Forgemasters signs landmark contract after two years of pre-construction works
4 days ago

McAlpine hires HS2 programme boss to head defence arm

Armed forces logistics expert Mike Hickson takes role as MD of defence
4 days ago

£200m carbon capture plan for Deeside site

Energy from waste operator enfinium looking to invest in North Wales plant
3 days ago

McAleer & Rushe promotes five staff to contracts directors

Design and build contractor targets £500m revenue next year
4 days ago

Consultant quartet win Government estate upgrade deal

Government Property Agency selects Arcadis, Tetra Tech, AtkinsRéalis and McBains
4 days ago

Resi towers pioneer to transform Liverpool site

Beetham founder Hugh Frost to help develop 1,200 new homes
5 days ago

Construction Manager of the Year crowned

Galliford Try's Barry Kingscote wins coveted prize: Full list of winners
4 days ago

Landsec £250m London terraced office job approved

Skanska tipped for 20-storey Hill House scheme near Fleet Street
5 days ago

Lendlease tops March contracts league

BAM and ISG rank third with big contract wins
4 days ago

Vistry strikes deal with Homes England for 1,000 units

Firm's timber frames factory will supply most of the Midlands houses
4 days ago

Morgan Sindall go-ahead to build 23-storey Salford resi job

Funding deal with CBRE allows latest project on bank of River Irwell to proceed
5 days ago

Unite Students gains planning for London and Bristol schemes

RG Group will build landmark Stratford tower and Freestone Island projects
5 days ago

Rolls-Royce gets go-ahead for 1.1m sq ft expansion in Derby

Major expansion of Raynesway campus planned to met submarine fleet orders
5 days ago

GMI Construction edges back into profit

A year of controlled consolidation helped generate £0.9m profit but cash at bank dropped to £10m
5 days ago

Balfour gets final sign-off for HMP Highland at £209m

Deal struck for delayed Inverness prison after costs rocket
6 days ago

Renew buys bridge maintenance business

Contractor boosts highways division with £5m acquisition
5 days ago

HS2 tests market for £150m mass transit job

2.4km long elevated Automated People Mover to go out to tender in 2026
5 days ago

Cardo completes fourth acquisition in a year

Expanding Welsh building maintenance specialist reaches £170m turnover
6 days ago

Watchdog clears Heidelberg takeover of Mick George

Four quarries and five ready-mix operations to be sold to meet competition concerns
6 days ago

Contractor services