Rail man pockets £18m after sale

THE privatised railways have delivered yet another multi-millionaire after signalling specialist Sean McKeague sold his business for more than £20m.

McKeague, 40, who founded ServiGroup at rail privatisation a decade ago, has bagged nearly £18m from his sale of the business to specialist industry contractor Mouchel Parkman.

The listed Mouchel Parkman, a smaller rival to the top-performing engineering consultancy WS Atkins, has bought ServiGroup to increase its exposure to the railway industry.

Analysts believe it is on the brink of a massive spending spree as Network Rail, the track operator, embarks on a £20bn programme to bring the railways into the 21st century.

ServiGroup and its subsidiary ServiRail is reckoned to be one of the fastest growing private companies in the country. The latest accounts of ServiGroup show that in the eight months to 31 March 2004, it had revenues of more than £17m.

While it had only £201,000 of pre-tax profits, that was after an annualised £1.3m was paid out to chairman and founder McKeague and a further £491,000 to managing director Alan Phelan.