Power and rail focus pays off for Bethell
NORTH West infrastructure, maintenance and construction company Bethell expects 2009 to be more challenging after revealing big hikes in sales and profits for 2008.
The family-owned business, based in Kearsley near Bolton, said its improved financial showing had been down to investment of around £750,000 over the last three years in new areas of rail maintenance and power generation.
It has a record order book of £125m, but has trimmed its workforce by around 50 to 800 as a consequence of a slowdown in construction.
Figures for the year to September 30 showed Bethell’s turnover rising 40% from £54.2m to £76.1m, while operating profits surged from £300,000 to £1.13m.
Chairman, chief executive and major shareholder Tim Kilroe said: “The growth in activities during 2008 has been delivered mainly through the expansion of our work in in the rail and power services sectors and the construction operations have also had a very successful year, completing some high profile projects, on time and on budget.”
He said Bethell Power Services, which provides services to electricity distribution network operators, had had a “strong year”, with turnover rising 15% to £31.3m, with a number of new contracts won and some others retained.
“Most significant have been a new five-year framework contract with Scottish Power for underground electrical works in the east of Scotland and re-securing a five-year contract for maintenance and refurbishment of overhead power lines with Western Power in South West England and South Wales.”
Two new operating bases were opened, one in Preston and the other in Scotland and staff numbers were boosted by 200 as a result of employees transferring from previous contract holders.
Operating profits in the power division leapt fen-fold from £100,000 to £1m.
Bethell Rail, which only began trading as a stand-alone business within the group on April 1, generated sales of £9.2m in the six months to September 30. Total rail turnover – included work classified in the construction division was £16.6m, up 255%.
Finance director Neil Hopkins-Coman said 2009 would be a “more challenging year” because of the slowdown in construction and also because of major rail customer Network Rail, eased the pace of its expenditure in the first quarter of this year.
Mr Hopkins-Coman said: “We could be a lot worse off. We’ve made quite a lot of investment in the rail and power businesses. As a private business we can focus on our long-term game, keeping our bankers happy and delivering solid results.
“This year will be tougher than last year, but overall we won’t be far off our targets for turnover and profits.”
