微密圈

Byrne Group has posted its first ever pre-tax loss 鈥� 拢12.1m - after taking big hits on two high-profile London jobs.

The group said in full-year accounts for the year to May 2014, posted at Companies House, that its fit-out business, Chorus, had experienced 鈥渟ignificant delays鈥� and alleged 鈥渦nder performance from the M&E subcontractor鈥� on the Sea Containers House hotel and office development on Bankside (pictured).

The M&E subcontractor on the job was Balfour Beatty Engineering Services.

Balfour Beatty was unavailable for comment before 微密圈 went to press.

Another Chorus job, Buckingham Gate, a high-end residential development in Westminster, 鈥渆ncountered significant difficulties with the ground conditions, which created an escalation in costs鈥�.

When contacted this week by 微密圈, Byrne managing director Tony Dowle said the firm was now benefiting from 鈥渁 strong recovery in new work鈥� in the current financial year. Its forward order book stands at 拢650m.

Dowle said it was taking a more 鈥渟elective鈥� approach to new contracts, with a focus on 鈥渢echnical quality鈥�.

Byrne Group is best known as a concrete frame subcontractor but has grown its fit-out operations in recent years.

The problem fit-out contracts pushed the group into the red last year, despite turnover growing by a quarter to 拢349.1m for the year to May 2014, up from 拢280.1m the previous year.

Byrne had posted a small pre-tax profit of 拢630,000 for the year to May 2013.

This week Byrne said it forecasts a dip in turnover to 拢300m for the current financial year, but a sharp increase to 拢400m for 2015/16.

Last year, despite the problems at Chorus, turnover in the fit-out division rose to 拢159m.

The group said its concrete frame business, Byrne Bros (Formwork), had had a strong year, securing work on courts 14 and 15 at the All England Club in Wimbledon, and International Quarter Stratford City, which at 4 million ft2 is the biggest new commercial development in London, comprising one 30-storey tower and another of 17 storeys.

FB Ellmer, the group鈥檚 high-end fit-out arm, grew turnover 23% to 拢68.9m. Recent contract awards include a 拢30m appointment in Kensington for a residential job, a joint venture between developer Grainger and the local authority.