Restructure sends Bridon into loss: Shift to focus on marketing pushes company into the red by pounds 22m
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Bridon, the wire and rope maker and distributor, has fallen deeply into the red as the company incurred costs of a restructuring programme.
Ron Petersen, the chief executive, said Bridon had reorganised itself to focus on marketing of products rather than their manufacture.
Most of the restructuring costs were incurred in the wire and wire rope parts of the business. Mr Petersen said Bridon was now organised so that wire and wire rope operated with autonomy to enable them to take full advantage of their different marketplaces.
A third focus for the business is to make and distribute value-added items with wire and rope-based components. Mr Petersen said the manufacturing end of the business was now considered to be a corporate resource centre, rather than a profit centre.
Bridon used management consultants to help formulate the new structure. Mr Petersen said: 'It cost us a couple of hundred thousand pounds but it was probably the best money we have ever spent.'
Exceptional items in the year to 31 December totalled pounds 22.4m. Pre-tax losses were pounds 22.7m compared with a profit of pounds 1.2m last time.
As well as suffering from a raft of restructuring charges Bridon was hit by weakness in demand and increased raw material costs.
Weak demand meant that Bridon was unable to pass raw material price increases on to customers, and underlying operating profits fell from pounds 7.6m to pounds 6.3m. Mr Petersen said the company was not expecting much improvement in markets this year.
Bridon has maintained its dividend at 4p despite recording losses per share of 40p. Disregarding the exceptionals, the payment was also uncovered by earnings per share of 3p. The shares fell 3p to 148p.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments