Cleveland Bridge returns to profit under new management team
Cleveland Bridge UK Ltd has reported profits of £2.5 million for its financial year ending 31 December 2015, which has been delivered under the stewardship of a new leadership team.
This is the first profit the Darlington-based steelwork company has returned in four years, reflecting the success of the current management team to turn the business around over the past twelve months.
Turnover at the company, which is owned by Al Rushaid Petroleum Investment Company, increased in 2015 by 53 percent on the previous year to £51.5 million.
Cleveland Bridge UK Ltd has secured a number of UK and international projects for 2016 and 2017, which will support further turnover growth for 2016, which is forecasted to be in the region of £55 million and maintain the company’s profitability.
These projects include an extension to the M74 motorway in Scotland, the redevelopment of London Bridge Station and the A6 Manchester Airport Relief Road.
Planned as a year of consolidation to enable the leadership team to embed its knowledge and experience, along with setting new standards as a platform for future growth, 2015 did see Cleveland Bridge UK Ltd secure and deliver a number of significant UK and international projects.
The company is part of the significant Forth Replacement Crossing, Scotland’s largest infrastructure project for many years, with the fabrication of the bridge’s North and South approach roads.
Cleveland Bridge is also supporting the widening of the A1 in North Yorkshire with the fabrication of steel girders to support the construction of bridges across the main carriageway. The project includes production of six pairs of girders, the heaviest pair weighing 88 tonnes, enabling Highways England to create a new local road over the A1 near Scotch Corner to improve access for local villages.
The company has also been active in the rail industry supporting two major projects at Paddington and Bond Street stations. Cleveland Bridge UK Ltd fabricated and supplied 800 tonnes of plunge column steelwork for the Paddington Station extension and 750 tonnes of plunge column and structural steel work for the extension at Bond Street that is creating two new ticket halls.
Employing almost 300 people directly, including 24 apprentices, and a portfolio of contractors, Cleveland Bridge UK Ltd has put a particular focus on improving efficiencies at its 22-acre site in Darlington. It has invested in new equipment and implemented new processes to support production improvements, which will continue in 2016 to underpin further growth and profitability.
Chris Droogan, Managing Director of Cleveland Bridge UK Ltd, said: “The efforts of the new management team, together with the commitment of our workforce and the support of our owners have enabled the business to return to profit.
“Cleveland Bridge UK Ltd has been a cornerstone of the British steel industry for more than 150 years and we are building on that legacy and global reputation by implementing innovative practices and production methods that will deliver further growth in UK and international markets.
“Infrastructure investment, in the UK and internationally, continues to provide long-term opportunities for the facilities, skills and experience of the company. Through continued investment and increased activity in our international sales functions, Cleveland Bridge UK Ltd aims to maintain its profitability and secure our position and reputation for high quality and timely project delivery.”