Irish project management firm PM Group said UK companies in high tech sectors are slow to invest because of Brexit. The company's comments came as it reported revenue of €290m and operating profit of €9.1m in its annual results to the end of December. According to the firm, operating profit was down by 14% mainly due to the impact of Brexit and currency exchange effects of a strong euro.
The chief executive of PM Group, Dave Murphy, said the UK market is a big market for the employee-owned company. "We're there for over 20 years, but what we've seen over the last couple of years with all the uncertainty surrounding Brexit, is that the companies we typically work for in those high tech sectors are slow to invest. We've seen that last year, and we're seeing it again this year, and that has impacted our revenues in that market and also our profitability," Mr Murphy said.
We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences
PM Group delivers projects in the high tech sector such as pharmaceuticals, food, medical technology, data centres. These are large, complex building projects such as the new Alexion bio-pharmaceutical facility in Blanchardstown in Dublin - a $500m investment in buildings and related infrastructure.
Glanbia is expanding its milk processing facility in Belview in Kilkenny. "We're managing the design and construction of that project which is estimated at €125m," the PM Group CEO said. The group also announced a new acquisition in Belgium today. It has acquired Magnet Group near Antwerp who operate in the similar sectors to PM Group. "We have been in Belgium for 15 years now so this strengthens our local presence in that market."
Mr Murphy said it is important for the group to diversify given the uncertain climate in the UK. "Europe has been very strong for us over the last 10 years, and we see that only getting stronger."
But he remains positive about the UK market in the medium and long term. "I guess we have to batten down the hatches and manage our way through it. The UK operation is supporting projects here in Ireland, and also projects in mainland Europe and places like Sweden and Switzerland. We think once Brexit passes that those companies will invest again. It's a big market, and in the medium to long term we remain quite positive about it."
MORNING BRIEFS - Amazon has become the second US-listed firm to have a market value of more than $1 trillion. Shares in the world's largest online retailer reached $2,050.50 per share, before slipping back. Apple reached the same milestone in early August.
*** Bloomberg is reporting that Ryanair chairman, David Bonderman, is facing increasing opposition to his re-election at the company's annual general meeting later this month. Two labour groups said that Mr Bonderman has presided over a corporate culture which was anti-union, adding that if Ryanair is serious about engaging with workers, the time has come for fresh leadership.
*** Shares in Nike fell last night after the response to the company's new ad campaign featuring former NFL footballer Colin Kaepernick. Kaepernick stood up to racial injustice by kneeling during the national anthem.
Nike stock closed the day down roughly 3.2%, as the hashtag NikeBoycott was trending on Twitter.
*** A site with planning permission for 420 apartments in Cabra, Dublin 7 has been brought to the market by Savills with a guide price of €32m.