BICC Plc, the London, W1-based cables, construction and technology group, has reported pre-tax profits for the year to December 31 down 55.7% at UKP81m, after exceptional charges of UKP42m, on turnover down 2.5% to UKP3,790m. BICC Technologies profits fell in 1991. BICC Chairman Robin Biggam says that targets had been set for the division three years ago and as these were not achieved, the group has now been disbanded. Finance director Ron Henderson says that UK-based Transmitton and Vero Electronics together with US-based Andover, are now listed under ‘Others’ in the company results. Turnover for ‘others’ fell 19% to UKP96m. The individual businesses will now run as free-standing operations. In January, the group completed the sale of its data networking business. Overall, the core businesses in cables and construction displayed resilience and remained cash generative and, as a result, year end net debt was modest at UKP35m, Biggam says. The only division to increase its pre-tax profits, to UKP38m, was the construction division, Balfour Beatty. However, Trans-Manche Link, the consortium responsible for construction of the Channel Tunnel in which BICC has a 10% interest, is in dispute with Eurotunnel. Biggam is confident of TML’s contractural position, yet the failure to resolve the issue and concerns over Eurotunnel’s revenues has led BICC to provide UKP12m against the contract. Turnover in the cables business fell 2% to UKP933m. The power sector performed well in the UK and Europe, although the market grew weaker in the second half. Volumes in Canada and the US fell sharply and prices weakened to uneconomic levels. In communications cables, the UK market flagged, although sales in Germany strengthened and exports from Australia increased significantly, according to Biggam. Henderson adds that this area will be the focus for the Group in the future. Property division BICC Developments continues to be affected by the recession, with turnover falling 46% to UKP14m, the Group has taken a special provision of UKP30m.
