Profits up as Amco shows strength in steel

A MOVE to focus on structural steel has helped engineering contractor Amco Corporation boost its profits.

The Barnsley-based company saw operating profit on continuing operations rise by 5.4% to £4.8m while pre-tax profits were in line with expectations at £7.5m for the year ended December 31.

Turnover over the 12 months increased from £65.4m to £69.8m.

Earlier this month buyout fund Endless backed the management buyout of four businesses with turnover of £100m employing 800 people from Yorkshire quoted group Amco Corporation.

The move saw Leeds-based Endless buying the construction, manufacturing and property investment and development businesses for £9.4m – which have net assets of £17m – of the former Wakefield-based group Amco which has retained its structural steel business, Billington Structures, as well as its engineering operations.

Amco directors David Jackson and Ian Swire, who worked with Endless on the deal, joined the new company, Amco Group, following the deal and have a combined stake of more than 30%.

Amco Corporation plans to change its name to Billington Holdings and will be based at Wombwell near Barnsley.

The group disposed of Amco Drilling, Amco Plastics and Amco Developments, as well as selling Amalgamated Construction, its construction arm.

Amco Corporation is focusing on structural steel activities through Billington Structures.

Its structural steel division posted pre-tax profits of £4.6m compared to £4.2m the previous year. It also has a record forward order book of £40m.