Birse's second half boost

After dropping back into the red in the first half, Birse has turned the ship round with a pre-tax profit of £2.2 million for the full year. "We're back on the conveyor belt," said finance director Martin Budden, announcing the group's annual results this week.

"In 1996, Birse got back into profitability and we were progressing nicely until we hit the wall in the first half of last year, suffering a pre-tax loss of £1.9 million. But it was a hiccup, resulting largely from a shortfall of work."

Birse's annual results (12 months to 30 April 1999) show a turnover of £360 million (£440 million). Pre-tax profit in 1998 was £5.2 million. In a reshuffle at the top, Peter Birse has stepped across from executive to non-executive chairman while ex-Ferranti man Peter Watson has arrived as chief executive. John Elders, MD of Birse Construction, has been appointed onto the group's board.

Birse is geared up for a turnover of £350-400 million this year. "In other words, we look to modest growth," said Budden. Last year, margins in the first half were -1.3 per cent, jumping to 2.7 per cent in the second half.

Budden reported that Birse's margins in 1997 stood at 0.5 per cent, climbing to 1 per cent in 1998. The underlying figure in the latest financial period was 1-1.5 per cent he pointed out.

All Birse's property has now been sold except for 20 acres of undeveloped land at Warrington, Lancashire. Budden said: "When we floated in 1989, Birse used the cash to go in for expansion into property and housing, not knowing that it was right at the top of the market."







"We had to disentangle ourselves, so from 1992 onwards, we have been conducting a disposal programme, the objective being to get out of property but only when able to sell at book value." Property sales during the year amounted to £3.8 million. Since then, Birse has also sold an investment property at Epping for £5.1 million.