BARR Holdings, the builder and civil engineer with interests in manufacturing and waste management, returned to profit in 2012 – a year after offloading its precast and steel divisions.
The Ayrshire-based company, whose construction division builds stadiums and supermarkets around the UK, made pre-tax profits of £2.02 million for the year ended December 31, 2012.
The firm, a wholly-owned subsidiary of Northern Ireland-based Trench Holdings, returned to the black after making a loss before tax of £2.54m in the previous year. Barr said the loss reflected the costs associated with the closure of its precast and steel divisions in late 2011, which had a knock-on effect on turnover in 2012.
Around 80 jobs went when the Solway Steel plant in Creetown, Dumfries and Galloway, and its sister operation in Killoch, near Cumnock in Ayrshire, were closed.
A further 60 roles were lost when Barr shut the Solway Precast concrete-making facility at Barrhill, South Ayrshire, although around 10 jobs were created when it was reopened in August by a consortium backed by Barr co-founder and former director John Barr. In accounts filed yesterday at Companies House, Barr said a drop in construction revenue had also been a factor as turnover dropped to £164.3m in 2012, compared with £210.9m the year before.
Barr, which is backing a campaign to encourage young people to consider careers in civil engineering, noted that it has invested heavily in training and developing its workforce over the year, as well as in health and safety It also reported that it had spent £2.1m in capital additions, largely in its quarry and environmental businesses.
The company's industrial services division quarries and manufactures dry stone, ready-mix concrete and coated products for the building industry, mainly sold in south west Scotland.
On its outlook for 2013, the directors noted: "The current marketplace is challenging in all sectors where the group trades, however the group continues to develop its businesses and maintain its capital investment programme."
The directors expressed confidence in continuing to operate within its current banking facilities, "based on the current order book, its best estimate of future market conditions and the underlying operational performance of the business". Barr said it is next scheduled to review the group's bank facilities next April, adding: "The directors have recently discussed with the group's bankers the group's overall and ongoing borrowing requirements and no matters have been drawn to the directors' attention to suggest that renewal of the relevant facilities will not be forthcoming on acceptable terms."
Barr Holdings employed an average of 483 staff during the year, compared with 702 in 2011, with more than half (398) engaged in construction and construction-related activities. Employee costs came in at just below £24m, down from £30.7m the year before.
Directors' emoluments for the year were reported at £557,000, compared with £995,000 in 2011.
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