Concrete products company Readymix has reported a 148% jump in pre-tax profits to €32.3m for the year to the end of December 2005, up from €13m in 2004. Profits were boosted by the sale of a disused quarry in Co Antrim for €20m.
Sales for the year came to €248.1m, just marginally higher that the 2004 sales figure of €247.5m. Operating profits for the group, excluding property disposals and rationalisation costs at €13.23m were 4.6% lower than the €13.87m seen in 2004. The figures were also below expectations.
Earnings per share were up 129% to 22.68 cent, up from 9.92 cent in 2004, while the dividend per share was flat at 7.05 cent.
Readymix said that administrative costs were lower due mainly to staff reductions. Total redundancy costs were €3.289m, compared to €0.194m in 2004 and related mainly to senior management and administrative staff.
The company also closed a number of businesses during the year because of continuing unsatisfactory returns. It ceased its road surfacing business in the final months of last year and the sale of the plant and equipment involved in this business will be finished in the first quarter of this year.
Readymix said the construction industry in the Republic grew by 8.8% to an estimated €30.3 billion in 2005 with housing continuing to be the dominant sector. While concrete sales increased in line with the industry, lower sales from road surfacing and precast concrete products reduced overall turnover by €0.7m to €160.9m from €161.6m in 2004.
In the North, the economy was stable last year with economic growth of about 2%. This low growth and its impact on the construction industry was reflected in the almost static volumes in concrete and aggregates. Prices were kept steady in an increasingly competitive market and increases in fuel, transport and raw materials affected the growth in margins. The company's anticipated recovery in demand on the Isle of Man was delayed to the latter part of last year, and volumes for the year were down on 2004.
Overall, turnover for Northern Ireland and the Isle of Man increased by 1.5% with increased sales of precast concrete products in the North and UK.
Readymix said that the outlook for the Republic of Ireland remains positive. 'Public capital investment and a strong labour market are expected to underpin levels of activity in Northern Ireland and the Isle of Man,' the company said.
'The momentum of change across the business is now firmly established and the board is confident that the actions that have taken and the plans that are being implemented will result in a significant improvement in financial performance during 2006,' it added.
Readymix shares closed up seven cent at €2.32 in Dublin.
