Byrne returns to profit after three years of losses

Concrete and fit-out specialist Byrne Group has returned to profit after three years of losses.

The firm has now all but wound up its loss-making Chorus commercial fit-out business which previously weighed down the group with legacy contracts.

In latest published accounts, chief executive Michael Byrne also revealed that South African construction group Wilson Bayly Holmes-Ovcon invested £12m in June for a 40% stake in the business.

The strategic investment by on of South Africa’s leading construction businesses strengthened Byrne’s balance sheet enhancing the firm’s ability to secure work.

In the year the March,  Byrne group returned a pre-tax profit of just over £1.6m on revenue slightly down at £322m.

The firm’s main concrete frame business Byrne Bros performed well delivering an operating profit of £6.3m, slightly up on the previous year on sales ahead 17% to £217m. As a result it achieved an operating margin of 4.1%.

New-build, refurbishment and fit-out contractor Ellmer achieved sales of £80m and returned a £1m operating profit after a £2.5m loss last year.

After deciding to wind down its commercial fit-out arm Chorus losses were reduced to £2.7m form £14m previously.

Micheal Byrne said that Chorus has just one £2m contract left on its books and no further losses were expected.

He added that since the year end Byrne had secured preferred bidder status on £235m worth of work.

from Construction Enquirer http://www.constructionenquirer.com/2017/10/11/byrne-returns-to-profit-after-three-years-of-losses/

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