Barhale plc, the midlands based UK-wide infrastructure services group, has announced a 50% growth in turnover and significantly improved profitability in its 2011 results.
For the year ended 31 December 2011 Barhale turnover grew to £150m, up from £101m in 2010, with operating profit increased to £1.8m compared to £0.5m in 2010. These profits were cash-backed, resulting in an increased year-end balance of £3.5m.
This growth sees a return to 2008 levels and is expected to form a platform for long term growth and margin enhancement over the next few years
Commenting on the results, Chief Executive Mark Cutler and Chairman and founder Dennis Curran are pleased with progress and optimistic for Barhale’s long term prospects.
“Over the last 12-18 months the management team has been busy improving the business and putting the building blocks in place for long term sustainable success.
We are delighted with the underlying performance of our operations across the UK and are starting to see the results of improved project and risk management. Our clients are increasingly seeking greater efficiencies and innovative solutions whilst delivering a reliable customer-focused service; which we are proud to have delivered in 2011.”
The growth in turnover and profitability is as a result of an increase in activity in Barhale’s traditional long term water frameworks, of which the company has seven. However the future plan also encompasses diversifying the business in related infrastructure sectors of energy and transport, applying the company’s integrated tunnelling, civil engineering and mechanical/electrical services model alongside its partnering pedigree and direct workforce.
“In 2011 we made significant progress in developing our market position in the energy and transport sectors, including winning new frameworks and projects with Gatwick airport, BP, Scottish Power and on Crossrail. We also successfully completed a number of high profile projects including our award wining work on the Olympic park and refocused our overall rail strategy to reflect a more selective approach.
We recruited more than 200 people in 2011 and opened our national training centre in Walsall. We also welcomed a number of key personnel into the business including John Ellis, Finance Director who joined the board in August 2011. The business also committed over £2m of capital investment in plant and other assets.
Performance to date in 2012 is also in line with our expectations; a year which will deliver further significant improvements in profitability and further progress in our overall development. In particular this year we expect to see further development of our mechanical and electrical capability and further diversification in the transport and energy sectors.
With a number of strong, long term relationships in place with blue-chip customers and key partners in our target sectors, we are in a good position to continue to grow and diversify over the coming years, both alone and in joint venture.”