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Steel figures underline Amco move

Restructuring construction and engineering group Amco said pre-tax profits at its continuing operations were up to £4.8 million last year.

The rise was a 3.5 per cent hike on 2006 figures with virtually all the profit – a record £4.6 million – coming from its structural steel and engineering business Billington Structures.

Turnover at the remaining business, which is being modelled on 2012 Olympic stadium steelwork contractor Severfield-Rowen, was up seven per cent to £70 million.

The AIM-listed firm sold its contracting business to a management team – led by former executive director David Jackson and ex-finance director Ian Swire – for £9.4 million earlier this month. This business will be called Amco Group while the continuing operations will be renamed Billington Holdings at its AGM next month.

Amco added that getting rid of its non-core businesses, which also include its property development and investment arms, would cost it a one-off £8.6 million relating a write down of the assets of the fair value. The firm said the writedown meant its post-tax loss last year was £4.2 million.

Revenue at the business bought by Mr Jackson and Mr Swire was up 15 per cent to £81.3 million but pre-tax profits nosedived to £900,000 from £4.2 million last time.

Amco said an unspecified contract in the West African country of Guinea blew a £1.8 million hole in its accounts which led to the profits slide.