June 4, 2007
Motherwell Bridge Ltd, the Lanarkshire-based engineering contractor, is on course for another solid year of trading.
Chairman Hugh Hayes marked his fourth anniversary with the company by issuing a trading update earlier this week in which he provided an overview of what he described as a “busy and exciting” year.
Mr Hayes admitted that setting up the management buy-out of Motherwell Bridge last September had been demanding and exhausting, but it was another positive step in the recovery from the company’s well documented past.
He also added that the sale of the aerospace operations to its management team last month had given new focus to that division, and it will allow Motherwell Bridge to concentrate on its oil and gas operations.
Mr Hayes said: “Going forward, we will be looking to enhance our presence in the Middle East where we have seen a marked increase in the level of enquiries, and we are currently in the process of establishing a new subsidiary – Motherwell Bridge International Ltd – which will handle all contracts outside the UK.
“We already have a full-time regional director based in Dubai, and are currently interviewing potential candidates to join the team. The prospects are very good, although we recognise that it takes time to build results from an initiative like this. However, MB Inspection has just completed its first large contract in Jordan, so we do now have an up-to-date reference site in the Middle East, as well as a string of enquiries to follow up.”
Mr Hayes confirmed that profits from trading for the 10 month period between the buy-out in September 2006 to the year end in June 2007 will exceed last year’s 12 month total, and it will be supplemented by some exceptional gains due to the corporate activity throughout the year. Results for the period to June 2007 will be released in September, and Mr Hayes remains very positive about future prospects.
He added: “Strong cash flow has again allowed a further significant reduction in levels of borrowings which are now extremely manageable, and negligible when compared with the levels of four years ago.
“We currently employ around 1000 people across the UK, we continue to generate good profits and we have robust cashflow so I’ve every reason to be positive about the future of Motherwell Bridge. We have some very clear ideas for the future and this will ensure that next year will be just as busy and exciting.”