The division's primary focus is now to complete a major loss-making contract that has dragged down its results. However, the company holds out hope of winning a major contractual claim.
B&CE recorded a loss of £1.58m on revenue of £16.81m. This meant that the group as a whole had a loss of £0.48m before tax even though group revenue had increased by 19.4% year-on-year to £89.39m. Last year, the group had made a profit of £0.12m on £74.87m.
The B&CE problems focus on a major problematical contract that has still not been completed, as well as significant cost overruns on two other projects.
"The current market remains extremely competitive with the result that tendering failed to produce the required return," added chairman Robert Moyle.
Restructuring of the B&CE division had already been instigated and redundancy costs have been incurred. Further cost reduction measures have been implemented.
The division is being scaled back to accord with current market conditions and the primary focus is to complete the major loss-making contract, which the company has already said will be the subject of a major contractual claim. It believes that this offers the opportunity of a potential significant recovery. "Once this contract is completed, the division's performance will progress," said Moyle.
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