Barhale integrates its IT in anticipation of expansion

Civil engineering group Barhale's rapid expansion to a turnover of more than £100m on the back of several chunky framework agreements has prompted a total revamp of its IT software systems.
Turnover stood at just £22m four years ago, but the Walsall-based group has grown rapidly since then. Part of the expansion is the result of its participation in HMB, a joint venture between Harbour & General and Morgan Est, which holds one of the three geographical AMP3 framework agreements with United Utilities.
Finance director Geoff Pearson said: "We've invested in new IT systems because, looking ahead, moving Barhale's turn-over up from £100m to £200m is not out of the question.
"The software is installed and working. The result is that all parts of the business are talking to each other, in the sense that IT information can now be exchanged."
Barhale's previous IT set-up was of the basic back office format, comprising self-contained elements which lacked an interface. "Being integrated now, we are benefiting from better decision making."
The IT software upgrade had four elements: project accounting; financial accounting; human resource administration; and safety, quality and environmental management.
"We've installed Siteman from Causeway for both the project accounting and financial accounting," Pearson said. "The previous systems served us well when we were a £25m to £40m-a-year player, but now we've moved up to £100m, we needed something more suitable."
The other elements to the software transformation were HR Professional for the human resources upgrade and Envoy, which handles the safety and environmental management elements.
The group's latest financial results (12 months to 31 August 2003) show turnover ahead at £107m (£62m), but with pre-tax profit dipping to £790,000 (£1.3m). Pearson said the IT spend ate up a large chunk of the potential profit, but when asked to put an exact figure on this he declined to elaborate.