REGIONAL engineering mainstay Cleveland Bridge is set to begin work on a £35m bridge-building project for the Sri Lankan Government - after a difficult 2010 which saw revenues almost halve.
The 130-year-old company has just published its results for the last calendar year which show revenues fell from £65m in the previous year to £37m in 2010.
As a result its pre-tax profits also fell sharply from £5.2m to £1.1m over the same period.
Staff numbers fell from 421 to 388 in a year and the company said its results are a symptom of the “prevailing market conditions”.
However, it says it is well-placed for the future. The director’s report, which accompanies its annual results, speaks of its prospects.
It says: “Cleveland Bridge has been awarded a £35m turnkey project by the Sri Lankan Government for the erection of a series of bridges in Sri Lanka.
“The work is due to commence in autumn 2011 and there is the potential for further work to be awarded in this area in the future.
“Numerous other projects have been secured in Cleveland Bridge UK’s core business of road and rail bridges and road and bridge refurbishment.
“Further major projects are being sourced in bridge construction, bridge refurbishments and commercial buildings sectors utilising the great technical and fabrication strengths of the group.”
The company’s balance sheet remains strong with shareholders’ funds of over £16m at the end of last year.
Cleveland Bridge was founded in 1877 and during its history it has been responsible for projects such as Zimbabwe’s Victoria Falls bridge in 1905, Newcastle’s King Edward VII bridge in 1908, the Humber and Trent bridges and the M25’s 2,872 metre Queen Elizabeth II bridge in Dartford in 1991.
For more than 10 years, it has been owned by Al Rushaid Investment, which is one of Saudi Arabia’s largest companies.
Last year, it won contracts including the supply of steel for Glasgow’s M74 extension and the £25m upgrade of the Bidston Moss Viaduct in Merseyside.
Its battle with Brookfield Construction over the Wembley construction project passed was settled by the Court of Appeal last year.
Brookfield, previously known as Multiplex, launched legal action against Cleveland Bridge in 2008 claiming there were errors in design and fabrication of the steelwork.
Multiplex blamed the Darlington company for delays which hit the £757m, 90,000-seater stadium and sought up to £45m from the sub-contractor.
But Cleveland claimed breach of contract and counter-sued for £22.6m.
Cleveland Bridge was ordered to pay capped damages of £6m in the High Court. A judge said that “neither party had won outright”. This bill was reduced to £1.8m on appeal last year.
Cleveland Bridge has been awarded a £35m turnkey project by the Sri Lankan Government
