Building materials group Readymix said the strengthening euro against sterling hit its profitability for the year ending December 2003 to the tune of €0.7m.
However, it still managed to report a 4% increase in pre-tax profits to €22.5m, while sales were up 10% to €231.5m. After what it called a 'challenging year', the company said that to increase profitability - by however small a margin - was a credible performance.
The board of Readymix is recommending an increase of 6.7% on the final dividend to 5.4 cent per share. This represents a total dividend for the year of 7.05 cent, compared with 6.71 cent in 2002.
Cash flow from operating activities exceeded €30m for the year. Readymix said that by the year end, its gearing stood at 21%, down from 52% in 1999 and from 24% in 2002.
Readymix said its activity levels in Ireland during the year were mainly driven by the record 69,000 housing completions while activity in its road construction section, under the National Development Plan, weakened in the second half of the year. This reflected a poor year in both the commercial and industrial sectors.
The company said its Northern Ireland operations saw increases in both sales and profits, with a particularly good set of results from the Finlay Breton group of companies.
The outcome in the Isle of Man was helped by a €0.7m profit on the sale of Readymix's last remaining involvement in builders' merchants.
Looking ahead, Readymix said that cost control continues to be a priority. 'Following the recent appointment of Joe Doyle as Managing Director, a structural reorganisation has been completed taking an all island approach and eliminating the less efficient former divisional structure,' the company said.
'Our market penetration throughout the island of Ireland, combined with strength of balance sheet, low gearing and continuing good cash flow, instills confidence for progression in the years ahead,' it concluded.
* Readymix shares slumped 7.32% to €1.90 in Dublin this evening - a fall of 15 cent.
