Maghera civil engineering firm BSG reports dip in sales and profits
SOUTH Derry firm BSG Civil Engineering, which is a key contractor to NI Water, has reported a dip is turnover and profits during 2017.
And in the current trading year the company says it is working to determined any final liability after the main contractor on two contracts in which it is involved was placed into administration.
BSG Civil Engineering, established in Maghera in 2004 as the result of an amalgamation of Seamus Gillan Civil Engineering and BSG Piling Ltd, posted a profit of £2.4 million last year against £3.7 million in 2016.
That came on a turnover of £29.3 million (down from £39.5m a year earlier).
When the bottom line profit (less £300,000 in dividends) was banked, it saw BSG's retained earnings at the end of 2017 rise from £32.7m to £35.6m.
Employee numbers during the year averaged 53, with the firm's pay bill going up from £1,956,403 to £2,112,993.
The firm has two named directors - Seamus Gillan (64) and Bernadette Gillan (63).
During the trading year BSG Civil Engineering was one of four companies awarded a major £100m water improvement contract by NI Water to upgrade the water mains infrastructure across Northern Ireland over the next four years.
Dunmurry-based Farrans Construction and Belfast-based Lagan Construction Group and Meridian Utilities were also brought on board to carry out improvement works on the water and waste water services across the north.
But in February this year the Lagan Construction Group went into administration.
In the directors' report accompanying the results, BSG said: "The company had provided guarantees, supported by performance bonds, in respect of the two contracts in which we are involved.
"The contracts between the customer and the main contractor have now either been terminated or suspended, with associated liabilities arising on these contracts, some of which, under the terms of the guarantees, may be accruing to the company.
"Liabilities which are known have been quantified using the best estimates of the directors have have been provided for in these financial statements. However, work is still ongoing to determine any final liability to the company."
BSG Civil Engineering - which has also acquired and developed property - has a number of other clients besides NI Water, and in recent years has been involved in multi million pound contracts for the likes of the Belfast Harbour Commission and Donegal County Council.