First profits as Birse goes from road to rail

As Birse Group this week announced its first profit since 1991, chairman Peter Birse said: "We're on the way up now."

The group's pre-tax profit of œ1.1 million (12 months to April) compares with a loss of œ7 million in 1995. Turnover was 19% higher, at œ360 million, while net debt halved to œ7 million.

Commenting on the results, Birse said: "It is nice to get an increase in the volume of work without having to do stupid things in the market. We have re-established our good name."

Road work has fallen from 33% to 15% of total workload, with Birse hoping to win more than one partnership agreement with Railtrack Major Projects. Nothing has been finalised, but Birse is "actively involved" in bidding for several regions.

The policy of building partnerships with clients is being extended, with Birse now offering the hand of goodwill to the various subcontractors it works with. An initiative to establish a pool of 400 subcontractors who wish to join with Birse in partnership arrangements has been set in motion.

"Some clients want to see us extend the same principle of co-operation that we have with them to our own subcontractors," said Birse. "We can save money for clients and the same should apply to our subcontractors.

"The more we work with the same group of subcontractors, the more loyalty they will have towards us," he added.