Barhale back in profit after problem contracts loss

Grant Prior 1 month ago
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Barhale is back making a profit after problem contracts saw the civils specialist suffer a £15m pre-tax loss during the year to June 30 2019.

Unexpected ground conditions on the Elan Valley Aqueduct scheme contributed to a £15m loss in the 2018/19 financial year
Unexpected ground conditions on the Elan Valley Aqueduct scheme contributed to a £15m loss in the 2018/19 financial year

Barhale has posted its latest full year results to Companies House and a six month update covering the second half of 2019.

The six month results covering June-December 2019 show a pre-tax profit of £2m on a turnover of £76m.

The latest figures are a major turnaround from the year to June 2019 when Barhale made a £15.15m pre-tax loss on turnover of £162m.

Those results were hit by unexpected ground conditions encountered on jobs for Severn Trent Water including challenging tunnel work on the Elan Valley Aqueduct scheme.

But the operational issues and a long standing dispute with Scottish Water were settled in the second half of 2019 leading to improved numbers.

And Barhale bosses are confident about future prospects despite the ongoing impact of Covid-19.

The company is back up and running on around 95% of its sites with just a few jobs still on hold in Scotland.

Barhale’s forward order book is also looking healthy following a string of AMP7 framework wins for water clients across the country.

CEO Matthew Behan said: “The sector in which we operate is essential in developing and maintaining the infrastructure upon which our society depends, and our involvement in major projects such as HS2 supports that belief, where it is likely that accelerated government spend could reinvigorate the construction sector.”

Behan added: “The Covid-19 crisis means progress on site is often slower than normal as we adapt to new ways of working.

“But it also means we are forced to innovate and get on with things which can be beneficial in the long run.

“If you had  told me a year ago all of our office staff would be working from home I’d have thought you were mad.

“But everyone has adapted to remote working and made it work which is a great testament to our staff.”

 

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