Pochin decided to sell its loss-making concrete pumping subsidiary earlier this year to focus on its original core businesses of construction and property development.
Since starting with a single concrete pump in 1969, Pochin's concrete pumping division today operates the largest wholly owned fleet of mobile concrete pumps in the UK.
Concrete pumping revenues fell to 拢8.8m in the year to 31 May 2011, down from 拢9.1m the year before.聽 Further cost cutting measures were introduced, reducing the operating loss for the year to 拢1.2m (2010: 拢2.9m loss).聽 This was slightly worse than anticipated due to the severe winter weather, when a loss of 拢300,000 was suffered in the month of December 2010 alone. 聽The company said that 鈥渆very effort has been made to increase both job price and utilisation and significant progress has been achieved in moving from historic lows鈥�.聽 Average job price for the year rose to 拢581 from 拢570 in the previous year and utilisation rose from 72% to 73%.聽 鈥淯nfortunately, over capacity in the market has restricted further improvement, although the current financial year is showing better progress as more infrastructure and utility work is commenced.,鈥� it added.
鈥淒espite the considerable efforts made to improve operating performance, the concrete pumping division continues to be a cash drain on the group's limited resources.鈥�
The concrete pumping division has therefore been treated as a discontinued operation in the group鈥檚 results for the year to 31 May 2011. These showed a profit on continuing activities before taxation of 拢700,000 (2010 re-presented: 拢13.7m loss).聽 Discontinued activities showed a pre-tax loss of 拢4.8m (2010: 拢2.9m loss).聽
Overall group revenue was down 10% to 拢59.3m. Turnover in the construction division fell by 32% to 拢41.6m (2010: 拢61.0m), although the firm order book now stands at 拢53.0m.
As well as the concrete pumping division, several non-core properties in Pochin鈥檚 portfolio are also being sold to reduce the 拢23m net debt.
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