好色先生TV

Bourne Group has weathered tough market conditions in the specialist steelwork sector to report a profit in every year since the financial crisis began, the firm鈥檚 chief executive has said.

Speaking to 好色先生TV, Steve Govier said his Poole-based firm has performed particularly well over the past 15 months.

In its last full financial year to 31 October 2013 the firm grew revenue by 40% to 拢44.5m and pre-tax profit by 80% to 拢900,000.

The firm is also trading strongly in the first three months of the current financial year and is forecasting a 24% increase in turnover to 拢55m and a 44% increase in pre-tax profit to 拢1.3m.

Govier said the firm plans to increase its workforce by 20% this year to 180 staff and is 鈥済earing up to take advantage of growth in all sectors, with investment in skills across the whole spectrum鈥�.

Govier, who is also chair of the British Constructional Steelwork Association (BCSA), acknowledges the specialist steelwork sector has experienced a 鈥渢ough鈥� seven years.

The collapse of 拢68m-turnover Welsh steel contractor Rowecord last April, alongside profit warnings, cost overruns and a change of chief executive at the UK鈥檚 largest steelwork contractor Severfield-Rowen, have grabbed the headlines for the steelwork sector over the past two years.

But Govier says the steel sector is 鈥渋n good shape鈥�.

鈥淭here鈥檚 a perception that the steelwork industry is in turmoil. But I鈥檓 here to say that鈥檚 absolutely not the case.

鈥淎 number of firms are in good shape and have the capacity to take on the work that鈥檚 now coming through. The steelwork industry is ready to take on these challenges.鈥�

Strategy

The bulk of Bourne鈥檚 business is in designing and manufacturing steelwork buildings, with recent major jobs including Blackfriars, Farringdon and Reading (pictured) stations and five waste-to-energy plants.

But Govier said a key part of the firm鈥檚 strategy is to continue to diversify into 鈥渉igh-value products and growing demand鈥�, including strengthening its modular building and car park-building divisions, which currently turn over 拢6m and 拢15m respectively.

The firm is also aiming to increase its market share in major London commercial projects, after forming a joint venture, BS2, with fellow steelwork contractor Billington in 2011.

BS2 has secured one undisclosed shopping centre project and is currently tendering for another major scheme.

Govier said BS2 allowed Bourne and Billington to compete with the two largest steelwork contractors, Severfield-Rowen and William Hare, which currently dominate the major steelwork projects market.

鈥淚t puts us on a level playing field so we can compete with them. BS2 brings together our complex engineering expertise and Billington鈥檚 capability as a large volume manufacturer.

鈥淚t also gives us the combined balance sheet strength for tendering major projects.鈥�

Surviving the recession

Despite growth over the past 15 months, Bourne Group鈥檚 turnover is well down on its pre-recession peak of 拢63m.

However, Govier said Bourne managed to remain profitable during the subsequent five years.

鈥淲e took a conscious strategy to get ahead of the market and cut back capacity,鈥� he said.

鈥淪ome of those cuts were pretty unpopular but the board knew it was necessary 鈥� I鈥檝e personally seen three recessions and our chairman has seen four.鈥�

The cuts included cutting 60 jobs, around a quarter of Bourne鈥檚 workforce.

Govier said the firm was also 鈥渃areful who [it] worked for鈥� and avoided 鈥渃ontractors taking on work at lower margins.鈥�

鈥淲e aligned ourselves to clients with similar values,鈥� he said.