Tuesday, January 24, 2012
The Coffey Construction group recorded a pre-tax profit of €6.8 million in 2010, new figures show.
The group is one of the largest building contractors in the West of Ireland and consolidated accounts recently filed by Coffey Construction Ltd show that the group recorded the pre-tax profit after incurring a pre-tax loss of €13.45m in 2009.
The returns made to the British-based Companies House show that the group returned to profit in spite of revenues more than halving, from €83.8m to €40.5m in the 12 months to the end of December 2010.
The group recorded an operating profit in 2010 of €2.3m compared to an operating loss of €12.8m in 2009.
The company recorded a profit of €4.6m on the disposal of 82.4% of Irish-registered subsidiary, Coffey Construction Ltd. The disposal was made on Jan 1, 2010.
The group’s accumulated profits stood at €1.5m at the end of 2010 with shareholder funds at €1.93m that includes €1.76m in cash
The numbers employed by the group plummeted from 378 to 85.
The group’s net debt reduced from €9.1m to €662,630 in 2010, while the group’s overdraft reduced from €8.5m to just €1.
The principal activities of the group are public work contracts, civil engineering contractors and the design, construction and operation of water treatment plants.
The directors’ report states that "due to the current economic conditions, the operating environment of the group continues to be challenging.
As a public works contractor, the group is heavily reliant on the capital expenditure budget in Ireland and Britain for future works".
The figures show that just €57,536 of the group’s revenues was generated in Britain, with the remaining €40.5m generated in Ireland.
The company’s "centre of management" is at Athenry, Co Galway.
The group’s cost of sales reduced in 2010 from €85.3m to €35.7m, with administrative expenses decreasing from €11.4m to €2.4m.
By Gordon Deegan
This appeared in the printed version of the Irish Examiner Tuesday, January 24, 2012