BICC Plc, the London, W1-based cables, construction and technology group, saw an acceleration in its profit decline for the first half – pre-tax earnings were off 34% at UKP66m on sales down 2% at UKP1,898m. The recession, the usual scapegoat, was to blame, particularly in North America and Australasia. Only BICC Cables, the group’s largest contributor, was able to maintain last year’s profit levels, the chairman said – pre-tax profits were flat at UKP58m on sales up 6% at UKP510m. This division performed well in the UK and continental Europe, where it continued to win major orders, and it secured a significant order for high voltage power cable supply and installation in Singapore. BICC Technologies, on the other hand, had a terrible time of it during the first six months, reporting profits off 9% at UKP79m on turnover which plummeted 82% to UKP1m. Market conditions were again to blame, and Sir William Barlow said that there are more cost cuts to be made. A BICC spokesman said it was disappointing that this company should be hit by the recession when it had just come out of a rigorous restructuring programme, and was in pretty good shape. The restructuring involved a 10% staff reduction – the division now has around 2,000 employees – and the closure of a couple of minor factories, such as a Vero Electronics plant in Luton. Technologies’ main activities are in data communications and networking, and building management systems, in Boston, Massachusetts, and in electronics in Southampton, UK. BICC doesn’t seem to know what else to do with Technologies, except sit tight and wait for the recession to end.
