A number of big steelwork names have been claimed by the economic troubles of the past three years.
Any thoughts that good times may be round the corner were dashed last year with the collapse of S Robinson and Barratt.
And the general view is that the storm will continue to ravage the UK constructional steel market for another 18 months at least, after what one firm described as a 鈥渉orrible year鈥�.
Collectively, the turnover of the 10 biggest UK steel contractors was only down by 2% to 拢754m. But worryingly, discounting Mabey's figures which are distorted by divestments, the combined profit was down by more than two thirds. Little wonder that many complain of 'suicide bidding'.
| Rank by turnover | Rank by profit | Company | Latest turnover (拢m) | Previous turnover (拢m) | Latest pre-tax profit (拢m) | Previous pre-tax profit (拢m) | Latest margin (%) | Previous margin (%) | Latest reporting period |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| 1 | 2 | Severfield Rowen | 267.8 | 266.7 | 10.1 | 15.3 | 3.8 | 5.7 | 31/12/11 |
| 2 | 3 | William Hare | 182.2 | 154.1 | 1.5 | 6.2 | 0.8 | 4.0 | 31/12/10 |
| 3 | 1 | Mabey Bridge | 64.6 | 55.7 | 34.4 | -1.2 | 53.3 | -2.2 | 30/09/11 |
| 4 | 8 | Billington Structures | 39.4 | 55.7 | 0.2 | 4.2 | 0.5 | 7.5 | 31/12/10 |
| 5 | 10 | Rowecord | 38.0 | 52.9 | -4.7 | 0.2 | -12.4 | 0.4 | 30/06/11 |
| 6 | 5 | Bourne Group | 37.6 | 36.5 | 0.9 | 1.8 | 2.4 | 4.9 | 31/10/11 |
| 7 | 4 | Cleveland Bridge | 37.2 | 65.3 | 1.2 | 5.2 | 3.2 | 8.0 | 31/12/10 |
| 8 | 9 | Caunton | 32.2 | 29.4 | 0.1 | 0.0 | 0.3 | 0.0 | 31/01/12 |
| 9 | 7 | Walter Watson | 30.4 | 29.0 | 0.4 | -0.4 | 1.3 | -1.4 | 31/12/10 |
| 10 | 6 | John Reid & Sons | 25.4 | 24.2 | 0.7 | 2.4 | 2.8 | 9.9 | 31/03/11 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| 听 | 听 | Totals / Averages | 754.8 | 769.5 | 44.8 | 33.7 | 5.6 | 3.7 | 听 |
Severfield Rowen remains the biggest UK steel contractor, with revenue steady at 拢267.8m, but profit dropping 34% to 拢10.1m. The firm can boast a UK order book of 拢221m despite the 鈥渙ngoing challenges of a subdued domestic market鈥�, but debt at year end had more than doubled from 拢15m to 拢31.1m.
William Hare enjoyed an 18% rise in revenue to 拢182.2m, but paid the penalty with profit dropping to just a quarter of the previous year's figure. The Bury-based contractor reduced head count by 61 to 1,512 during the year, but considers itself 鈥渨ell placed鈥� and 鈥渃onfident about international diversification鈥�.
Mabey Bridge, whose turnover climbed 16% to 拢64.6m, made 拢41.8m from the sale of its subsidiaries Mabey Support Systems, Mabey & Johnson, and Fairfield Mabey to holding company Mabey Engineering, plus Severn Crossing Developments to Beachley Property. This revenue partially hid a 鈥渄isappointing鈥� operating loss of 拢4.1m. Mabey however is 鈥渙ptimistic鈥� about its prospects after investing 拢1.6m in a wind turbine tower manufacturing facility.
Billington's revenue took a big hit, dropping 26% on its previously set of results for 2009. Profit dived from 拢4.2m to just 拢0.2m. Blaming 鈥渙vercapacity in the sector鈥�, the firm was 鈥渆xpecting a much poorer performance in 2011鈥�.
Rowecord also experienced a substantial drop in turnover, which crashed almost 40% to 拢38m. Alarmingly, the South Wales business posted a 拢4.7m loss. The directors believe Rowecord, and the steel industry generally, is in 鈥渁 period of consolidation鈥�.
One of the industry's blue ribbon names, Cleveland Bridge, suffered the worst fall in revenue in the sector, a 42% drop to 拢37.2m. Profit at the Al Rushaid-owned firm, which dates from 1877, plunged from 拢5.2m to 拢1.2m.
Bourne managed to hold turnover steady, despite profit falling by half in what it described as a 鈥渉orrible year鈥�. The directors pointed the finger at 鈥渃ut throat competition鈥� with 鈥減rojects won by companies at negative margins鈥�. They see 鈥渘o immediate sign of recovery for 12-18 months鈥�. Bourne says it 鈥渞efuses to engage in suicide bidding and has an excellent cash position of 拢8m鈥�.
Caunton and Walter Watson both managed marginal increases in revenue, though the former expects the market to stay 鈥渇lat till 2014鈥�.
John Reid, which also lifted turnover, has prioritised a 鈥減rogramme of planned growth鈥� for 2011/12.
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